Right now it is believe that until we get to a 20 mb block vps’s should be fine at the current price master node operators make 3k a month so upgrading vps for each master node shouldn’t be an issue. Here is a link to info on the scaling plan. https://medium.com/@eduffield222/how-to-enabling-on-chain-scaling-2ffab5997f8b
I think full block would be good we can show the network scaling and have a proof of concept to the world.
Why don't we increase the block size to 20Mb immediately? This is a rhetorical question.
People know in the subconscious level that if a block of this size is mined right now, it must be a flood attack. Then, the network is kept below its full potential as a kind of protection against flood attacks. The model would allow we increase the block size more quickly.