Fortunately we aren't anywhere near the limit, and we can adjust the limit in the future if we encounter it and there is enough agreement from the community.
You are correct, I'm not trying to FUD despite being a bit pessimistic. Just pointing out some obvious logical flaws. However I also feel inclined to point out that miners might not want to increase block size, since keeping a constant supply against increasing demand would cause an increase in transaction fees and therefore profit. There are likely many soft limits like that which we will encounter in the future.
Again, not trying to FUD. Bitcoin is secure, these issues come up long before any casualties.