There should have been a 4-year upgrade in terms of block size incrimination in a similar fashion to how network difficulty rises with time. What I mean is, that Satoshi was able to identify the supply and demand issue earlier through its halving event. However, they did not consider the scaling of block sizes or maybe they never thought that Bitcoin would go to such a high level anytime soon.
Difficulty doesn't rise with time, there is a negative correlation. It was identified and also a pressing issue, but we never reached a conclusion on the following:
So I am not sure if this is technically valid or not, but there should have been an algorithm that automatically increases the size of the block every 4 years or whatever period is feasible to make it happen. Let's say that would be a block-size event in a similar way we have a Halving event. As a result over time, we don't need to fork Bitcoin and create more shit coins as a result.
We couldn't reach a consensus on when we should increase block size, how we should increase the block size and by how much should we increase the block size. Of course, we could have a simple algorithm but the scenario where the demand can't reach the expected level would make it disastrous for the eco-system and it would be difficult to reverse. Furthermore, Moore's law is likely not going to hold forever and storage density would stagnant somewhere for a while in the near future.
I know I may not be close to the solution because there could be whole new realm of coding behind this, but at some point we definitely need to think about the solution whether its hardest or simplest, that wont matter.
We have, there are quite a few viable solutions but the overall impact to Bitcoin and the economy differs with each solution. The difficulty is not with coming up with the solution but rather which solution makes the most sense and coming to a consensus with it.