Comment by mithrilskeleton

The whole point of restricting the block size was to ensure space in the blockchain was scarce to drive the price of fees up, better securing the network. Well, that and keeping the blockchain total size small enough to be processed on an regular user's PC for decentralization sake. While a loss of some decentralization is non-ideal, increasing the block size dynamically, similarly to how difficulty is handled, would be a reasonable compromise to ensure the security of the network long term.