Why is it that lightning can't expand sufficiently? I don't understand what the practical limit is. If, in a few years, we have a $25 totally-automated, plug-in-and-forget it node for every household, why can't lightning be as fast and useful for everyone as it is for those of us using it now?

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The UTXO set is limited as well as our capacity to open channels while channel factories may help with the latter.