That's why it was such a compromise. In order to get the massive decentralization and privacy boost of the malleability fix that segwit provided, the blocksize increase was included to give the increase that the classic hard-fork suggested. And it was done as a soft-fork too, which means none of the 160,000+ bitcoin nodes needed to upgrade their software.

And what happened? After they got exactly what they wanted with the doubling of capacity, they said "we want more" which demonstrated the entire exercise had nothing to do with blocksize, but about stealing the blockchain away from its users, and centralizing it in their data-centers. Which is why, months after the segwit implementation, the biggest and loudest people clamouring for a capacity increase for years, which includes bitpay, the subject of this thread, and coinbase, which has been an actively undermining the bitcoin developers for years, have not even implemented the blocksize increase. So much for blocksize being important.