For the raise: As the number of transactions organically grows, if the blocks fill up, users will be pushed to "off-chain" services such as CoinBase or ChangeTip. This will hurt decentralization, because these services are basically banks.
Against the raise: As the size of blocks have grown, the number of full nodes has fallen. Further increases in block size will only make the number of full nodes decrease further (because of increased requirements for bandwidth, memory, and disk space), which will hurt decentralization.
The basic problem is that Bitcoin wasn't designed to scale - it was a prototype to prove that something like Bitcoin was possible. Then they ran with it. MORAL: nothing persists like a quick hack.
On the subject of quick hacks persisting, the (arguably flawed) design of BGP on a restaurant napkin is a great example. [2]
[1] https://bitcointalk.org/index.php?topic=286.msg2947#msg2947