Consider this: 7 transactions per second is about 220 M transactions per year. If we want to open one lightning channel for each of the 8 B humans, we'd need 36 years just for all the channel opening transactions. This is too slow.

Also having just one channel per person would lead to star topology, in other words, huge centralization. Two channels per person would lead to long chains of channels; for something resembling a useful decentralized network you need 3 channels per person. That'd be 108 years just to open all those channels.

Of course the block size could and should be raised at some point but this would also harm decentralization as it might drown some poor node operators by raising the storage costs.

Um, yes. Censorship resistance at the cost of scaling is Monero's choice. But Monero is only able to onboard user number N+1 but not several billion new users.

Most people use LN either with a custodial wallet or with channel-managed wallets like Phoenix or Breeze. If for example EU government buries ACINQ (and it probably will!), Phoenix users would receive their money on-chain but won't be able to use Phoenix anymore. So there are already pain points that a government can press.