This does not address your main question but response to some of the wrong assumptions in the question:
- Bitcoin blocksize is not 1 MB: What's the blocksize limit after segwit and how do legacy nodes deal with segwit transactions?
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A major problem with simple approaches to increasing the Bitcoin blocksize is that for certain transactions, signature-hashing scales quadratically rather than linearly.
https://bitcoincore.org/en/2016/01/26/segwit-benefits/
- Increasing the blocksize every few months or increasing it by more than 1000x will most probably increase the blockchain size unexpectedly/rapidly, cost to run full nodes and other issue so decrease decentralization.
1 Bitcoin transaction can be done for more than 1 real world payment so transactions per second when comparing with few other systems is a wrong metric in my opinion and explained here: https://bitcoin.stackexchange.com/a/100829/
Bitcoin scaling works in layers: https://bitcoinkpis.com/layer2 and this does not mean on-chain development has stopped or will not focus on scaling. Example:
Compared to ECDSA signatures, Schnorr signatures are between 6 and 9 byte shorter. These savings stem from the removed encoding overhead and the default SigHash flag. With a Schnorr signature adoption of 20%, and assuming all of the 800.000 inputs spent per day contain only a single signature, more than 1MB of blockchain space is saved per day.