That's one way of putting it. Another way to look at the blocksize issue is: should the supply of transaction space be limited by free market mechanisms alone, or by committee decision/voting/negotiations?
With a very large blocksize limit, miners who produce blocks which are very big, run the risk of a smaller block from a competing miner winning the race, as it is faster to validate and propagate over the network.
This limiting factor should mean the blocksize converges to a size that the network can comfortably handle.