Not raising blocksize, *at least* roughly allowing for Moore's Law, seems insane, and would just drive some alt to gain significant marketshare.
Absolutely.
No matter how good SC are, they are not a substitute for allowing the existing system to scale at the rate of the
slowest improving computing technology: bandwidth.
Bandwidth may or may not be the
slowest improving computing technology, but it's certainly the weak link in any networked system.
It's hard enough to understand how people could fantasize about Bitcoin becoming the new gold and vanquishing the USD and all that crap. It's much much much more difficult to understand how one could envision this with everything going on in today's hunky-dory fasion with 'Moores law' yielding joy and solutions to all the unwashed masses problems.
So-called 'bandwidth'* will never be brought to zero, but it could quite trivially be brought to a very low value under the right set of circumstances. And there are a number of sets which would qualify. I don't (currently) fear that my BTC would vanish in such instances, but they could become vastly less useful and convenient for a fair bit of time. As long as Bitcoin does not actually need protective hardening against robust attacks (as is the case today) then it is mostly a toy (as is the case today.)
(*) latency is at least as big of a potential threat.
Never underestimate the bandwidth of a station wagon full of tapes hurtling down the highway.
Tanenbaum, Andrew S. (1989). Computer Networks. New Jersey: Prentice-Hall. p. 57. ISBN 0-13-166836-6.