I don't trust Blockstream, or any other for profit company. I'm into bitcoin because it removes trust.
With that being said, it's a good thing they didn't upgraded the block size, if anything we need smaller blocks. Also what makes you think Blockstream can do this without consensus?
From the block size war, Blockstream have the necessity to be involved and control as possible the dev of Bitcoin because there is a clear conflict of interest, Bitcoin need to remain slow with high fees for selling their own solution. Probably it will not be so easy for them to implement a blacklist or something like if the government ask them, but it will be a new war at this point. I hope it will never happen
