If we were to keep the fee market overly competitive, ie. $20 for a single transaction, it can dissuade people from using Bitcoin as a currency when there are multiple other payment methods as well. /quote]
I don't disagree with this at all. As I've said repeatedly through this whole saga, I think the correct approach here is to work on scaling, and not to arbitrarily ban certain transactions in order to allow other transactions to be processed more cheaply. I have no doubt that increasing the effective block size at some point will be part of that solution, but it cannot be the only solution for the reasons discussed above. Just ramping up the block size by a couple of orders of magnitude destroys bitcoin's security and completely centralizes the system, as has happened with shitcoins like BSV.