There's value in diluting value (and deluding the public) otherwise it wouldn't happen.

The same will happen to Bitcoin. One attack vector are too big blocks. Another attack vector are too small blocks.

The first because it centralises infrastructure making it an easy target for governments. The second because it centralises KYC liquidity in custodial solutions (LN custodian liquidity pools, CEX, ETF).

I believe that the best way forward is increasing blocksizes according to hardware progress. And in that regard Monero comes closest to hitting the sweet spot with its dynamic blocksizes.