Mining hardware doesn't last long, it's hash rate gets outdated quickly, depending on energy cost. I don't know the exact numbers, but I guess it's less than 2 years. That means miners don't look ahead much further, their financial interests are only short-term.
I doubt Satoshi ever expected mining to become so centralized that miners can dictate block size.
Indeed. But actually, miners don't dictate block size. They keep the block size that Satoshi dictated.