Horizontal scaling on chain is perfectly possible. The only thing one needs to give up is Bitcoin maximalism.
Meaning, I choose BTC for large settlement where I don't care about my privacy, while I use bcash or Litecoin or Nano or (you name it) for everything else. Their security assumptions are way better than any pegged in pegged out, layered BTC where we introduce custodians like ecash or strangle liquidity like LN.
Monero is my opt out money. Where I speculate on the downfall of the West while protecting my wealth + family.