Interesting, though in regards to your point:
#1: Even with the transaction limit (in this case for Bitcoin, but it can go for any other crypto), a price increase to ridiculous levels could happen. All that needs to continue is increasing adoption in the given crypto, combined with trading/speculation.

#2: Totally agree with you, though who says Bitcoin on my example can say the crypto that will end up being dominant at the end-game and/or the entire crypto market combined. Doesn't have to be strictly Bitcoin to pull such a scenario off.