If/when there is contention for space on the blockchain, there is a huge amount of room to grow by simply squeezing out the freeloaders. As it happens, they'll not be left homeless or forced to the alt-ville ghettos due to the development of subordinate chains which provide real Bitcoin power through a proxy and does not bloat the core chain and thus compromise the network or require a hard-fork and associated risk.
In other words, life is good! Just look at the price charts for confirmation. It is funny (and not very surprising) to see the likes of Coinbase desperate to reverse the goodness.
Squeezing out the freeloaders? I suppose that would include myself and many other users of Bitcoin, I pay fees but I would not be prepared to pay much larger fees if I can just use an alternative currency instead, Bitcoin does still need to compete. Who are you to say what is a legitimate use of the blockchain and what is not, we should allow as many people as possible to use the blockchain so that its benefits are felt by more people in the world. Third parties build on top of the Bitcoin blockchain do not have the same benefits as transacting on the main bitcoin blockchain directly, no thank you to using third parties on top of the Bitcoin blockchain,
not for me at least.