They could have handled it much better. It was very pathetic for a multi billion dollar company.

Also Coinbase has stated that they want bigger blocks. They have not contributed at all to the development of 2nd layer scaling like LN. They also took too long to finally adopt Segwit.

For Coinbase, it's much easier to increase the blocks. This means they don't have to invest in their own Bitcoin infrastructure to make it more efficient.