Basically, the blockreward can be seen like a set of training wheels that keeps bitcoin up and running.
Long ago it was decided that Monero would take an alternative route, wherein having those wheels available to prevent the bicycle from falling over is good, and the tradeoff of having an infinite supply of monero is acceptable.
Tiny wheels, tiny infinity.
Thats interesting... Never thought of it like that before. So the 1mB block size is a hard set rule and the miners will always hit that (considering how many txs there always are ) and arent dissuaded somehow against ever going above 1 mB due to some game theory?