Well I'm still relatively new to Bitcoin, but my understanding is that larger blocksizes increase the orphan rate, and block generation can be effective and efficient at a rate of one block every 33 seconds. I'll try to find the statistical paper that contains those calculations. This seems to be especially true as transaction volumes increase.
Obviously larger blocksizes increase the orphan rate, but if you compare apples with apples like 1M@10m and 50KB@30s then you get higher % of waste hashpower with the 50KB@30s. The average block propagation time to miners for 50KB is not 20x faster than 1M, there are lattencies not linearly dependend on blocksize.
And even with average 33 seconds, it is not enought at point of sale locations to wait up to few minutes to get unreversible transaction. You need at point of sale locations confidence for 0-conf transactions anyway. And dont talk about LN because it does not work yet (and there is chance LN will not work in decentralized manner - so LN could to be turned out as just another centralized option which existing already - fund debit card with Bitcoin and use it anywhere with instant transactions)