The primary argument to retain the 1MB limit is that smaller blocks helps ensure decentralization of Bitcoin. Lots of people rightly care about this.
That was never a very good argument.
The 1 MB limit was originally an anti-spam measure, and since it was put in place the biggest proponents for keeping it there were altcoiners who wanted Bitcoin to stay crippled to leave room for them.
The loss of full nodes is due to a delay in the appearance of Bitcoin-native businesses. There's nothing wrong with the demands of running a full node being something that only power users/small businesses and up can handle.