Block space needs to be limited to ensure bitcoin's long term survival.
Given that the block subsidy is halving every 4 years, it will not be long before the subsidy alone is negligible and certainly not enough to support even a fraction of the current hashrate. At that point, fees have to be sufficient to take over. For fees to be sufficient, block space has to be limited and there needs to be a full mempool and a competitive fee market. If we increase block size so everything can confirm at 1 sat/vbyte, then even for a (let's say) 16 MvB block you are still only talking about fees of 0.16 BTC.
If you want everything to confirm in the next block at tiny fees, then you need some other mechanism to pay miners once the subsidy is insufficient. That means either lifting the cap of 21 million and having constant inflation, or some other mining incentive like merged mining.
Merged mining already exists> I point 6ph of btc miners at viabtc and earn 3 other coins at the same time. the other coins are essentially worthless.
BTC goes against LTC/DOGE
1 block vs 12 blocks
vanishing rewards vs a hybrid of vanishing rewards+ stable rewards.
if you look at the two setups.
btc is far less suited to move small coin values.
One reason is it was the first coin and people have pushed using it for value storage.
It is a shit fit to move little coin value. Great for large coin value.
Tweaking to make it work for small value mya prove to be its undoing.
Or LN could get fully adapted along with 10 digits not 8 . Time will tell.