Much of the debate surrounding bitcoin's scaling problem seems to stem from two different visions of what bitcoin should be right now: a store of value or a peer-to-peer digital cash system. Both sides agree that in the long run both of these properties should be met, but the question is: Will bitcoin hold value even if TX throughput does not scale soon or do we risk losing our first mover advantage if bitcoin is not able to fulfil its promises as a peer-to-peer cash system soon.
I would love to hear some arguments from both sides of this debate
I don't know if both sides actually agree but I can say with certainty that a store of value function of Bitcoin pretty much excludes its use as a peer-to-peer digital cash system (basically, as a currency). You don't even need to scry into the future since it has always been the case in history, where you can look for examples proving this point of view. Back then, gold coins were stashed (and paid taxes with) while silver specie was actually used for circulation...
Therefore, I don't think that the paradigm of bad money driving out good from circulation is going to change any time soon (or ever)