This isn't an actual solution though, because space is still limited. Bitcoin cannot be a currency if it can only fit 2,000 transactions per block. Even if ever

This isn't an actual solution though, because space is still limited. Bitcoin cannot be a currency if it can only fit 2,000 transactions per block. Even if everyone is willing to pay $100 in fees for their $1 transactions, they won't all fit, and that's broken. The challenge is to find a way for miners to be incentivized and for them also to process all reasonable transactions. There's no reason miner's couldn't increase their fees independently of the block size increase.