That can be done without increasing block size, if you instead batch transactions in non-interactive ways, by using cut-through: https://bitcointalk.org/index.php?topic=281848.0

In general, the whole reason, why block size is not increased, is to encourage people to make better second layers. In 2017, there was a huge scaling debate, and BTC decided to scale through additional layers, like Lightning Network, while BCH and other altcoins decided to scale on-chain (and later, BSV made the block size unlimited).

And since Ordinals and other spammy transactions started to fill the whole blocks with non-consensus data, the path to increase the maximum block size is at least blocked, if not closed, as long as these issues are not fixed. Also, future updates, like "quantum resistance" have to be "JPEG-resistant": https://groups.google.com/g/bitcoindev/c/5Ff0jdQPofo

Also, since there are plans to make nodes even more pruned, than they currently are, by storing only a subset of the current UTXO set, then note, that increasing the maximum block size will just add more steam to proposals like that: https://delvingbitcoin.org/t/dust-expiry-clean-the-utxo-set-from-spam/1707