One of the famous false prophecy of Karl Marx is that the free market mechanism would be lead to the monopoly of few corporations (thanks to economy of scale) that would end up controling the world production.
In other world, he tought unconstrained competition would allow for large entities to capture the economy.
This is already realized in many countries, a few large enterprises controlled the production of almost everything in a country. And the best example is the fiat money creation, totally dominated by a few reserve banks, while from the beginning any kind of private currency is allowed to circulate
And the block size limit has nothing to do with free market, it is just a measure to prevent spam attacks,
without this limit, a bank can jam the traffic on bitcoin network for months, so that no transaction can be done at all
This makes no sense. The current limit basically provides a lower bar for the nefarious banking institution organizing the attack. The attacker has less room to fill to effectively price out all other transactions. It makes the attack cheaper.
I have heard arguments that the limit should be used to "foster the growth of a fee market" which really means raising tx prices via an artificial, centrally planned, capacity limit. Miners, the producers of new block space, should determine the optimum size blocks to create while accounting for orphan risk and the health of the entire network. Harm the network and they harm their future earning potential. Create a huge block that takes forever to verify, be prepared to be orphaned by a chain of smaller blocks.
max-block-size, if necessary at all, should be a circuit breaker or malicious miner protection only. Not an economic policy tool. Satoshi understood free market incentives, he designed the system around them, they should be allowed to work.