>None of this is new. The Bitcoin "block size war" was fought over this very point. Unworkable scaling schemes are going to end in disaster with no fallback, and no recourse for those who lose money. You end up with nothing, and will be sad.
I don't see the parallel to 'the Bitcoin "block size war"', though? The solution on either side (bigger blocks, lightning network) doesn't require trusting some party to handle transactions.