Segwit increase the block size from 1MB to 4vMB that means we actually can able to fit more transaction than what we used to a decade ago but is this enough after a decade we never know.
If you've tried to make Bitcoin transaction few times in past year or follow the news, surely you know there are times when you're forced to pay high fee rate to get your transaction confirmed quickly.
I agree, the least possible fee in the last 12-14 months of the period used for TX to get included in the block was 6-7sat/vb which is higher than 1sat/vb that is what we always expect to pay whenever we want to transact bitcoin but also the same time we should not forget that ordinals spam still plays a role in that surge of fees than the actual adoption and I don't think increasing the block space is not going to solve them either.
Another thing is we also have to consider the mining rewards cause increasing the block space will make all the transactions go through the lowest possible fee, which means they have to sustain only with a minimal cost if block rewards reduced that may lead to a decrease in hash rate of the network so that it makes 51% attack more possible in theory at a cheaper cost than what is the cost of attempting the same now.