I want to add that I believe at some point we also need to address the scaling issue through a hard fork to fix a lot of things in the protocol (eg. merging Legacy and SegWit, fix bugs like sigopcount) and also increase the cap itself.
That is unlikely to happen. It's going to break tons of software.
I think the main two technological reasons to not increase block size are storage space, as you mentioned, and propagation time through the network.
The issue, or feature, depending on your perspective, is that Bitcoin has a hard cap. This means that eventually, it will rely entirely on transaction fees, which in consequence means that the network must
always be congested. Increasing the block size rises the risk of the network becoming unsustainable to continue operating at some point in the future.
So, it's not about "technological limitations" per se. It's mostly this economic problem.