Bigger blocks do not scale. It's just kicking the can down the road and opening a can of worms.
Offchain transactions do scale on the other hand. You can have as many offchain txs as you desire.
Comments?
We will reach a point where 1MB is not enough, offchain or not.
I agree that minimum treshold of small transactions should be active so micro transactions go off the chain, and "normal amount of money" transactions stay on the main chain, but guess what, even 1MB will eventually not be enough.