FCMP brings transaction chaining, but I've seen ZK Rollup schemes being discussed. Too early to tell what is going to happen.
I could argue Bitcoin has been too conservative. Bandwidth, hard drive capacity, and affordability have all dramatically increased since the creation of Bitcoin. I see China is now improving their internet infrastructure for 10Gbps bandwidth now.
small fixed blocks and increasing adoption mean -> only rich will be able to afford on-chain transactions or to enforce their LN channels -> no incentive for most users to run a node if they can't use the chain -> rich control the network
Tens of millions of Bitcoin users and only ~60k nodes. Not even a fraction of one percent are running their own node. So much for small blocks.
I guess time will tell