Eventually, so that it's not only the financial elite that can use L1, the block size does have to increase, and I think it's a matter of when and by how much, not whether or not. That's clear from the early Bitcoin design going back to Satoshi himself. The big blockers needed to be convinced of L2's being eventually viable options, not be censored and kicked out. That hurt the community.
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It's often forgotten in the flamewars that it resulted in a block size increase on both sides of the fork. One of them with a hard fork and one with a soft fork (segwit).
There are quotes from Satoshi where he writes about bigger blocks but also ones where he writes about keeping blocks small. In the end Satoshi does not get to decide, the network participants do, which I think is one of the best aspects of Bitcoin.
the big blockers made criticisms of the lightning network that later turned out to be true. I still don't think that blocksize increases are completely necessary, but you definitely need consensus changes to facilitate better L2s. better to prioritize this. governments and banks have perverse incentives to stall development. they prefer for bitcoin to scale via custodians.
