In the next few weeks/months something needs to be improved to make enough capacity for all new Steemians, it could be the algorithm itself or the max_block_size parameter set by Witnesses.

Longer term if the usage continues to grow there will certainly need to be an increase to the block size. The other thing that is needed is more visibility of bandwidth usage and limits so people can be more aware of them and not get cut off so frequently or for such long periods of time. When the reserve ratio is reduced, the accounts which are cut off first are those which are using the highest percentage of their maximum allowance (which can be increased by powering up for SP). Each user has to make a bit of a tradeoff between higher usage during low-usage periods, being cut off during high-usage periods, and powering up more SP. Unfortunately this tradeoff is difficult to make now in practice because bandwidth usage is not even visible at all in the UI.