It would need larger blocks, but it was the general understanding within the community before the fork that with Moore's Law, hard disk capacity would increase and price would go down in the future, so it really isn't a big deal, and not enough to cause "centralization of nodes" like some people argue.

Also, my understanding is that Lightning Network is semi-custodial, so it's probably more similar to banks than credit cards. I'm unsure why modern bitcoiners are adamant about "not your keys, not your coins", but are ok with semi-custodial solutions.