I also feel Bitcoin classic is a best way to go. Also, since miners support it, no need to go further, they move the entire network.
About Bitgo, I use it for some time, no issues, great service.
No, I don't think so. I don't have any idea if we should increase the blocksize, but I'm sure is that an hard fork will never be a solution, because it's breaking the fundamental rule of Bitcoin : the consensus.
Consensus is never going to happen anymore. Bitcoin has gotten too big with too many players with different agendas to reach consensus on the level they want it.
Look in your local government for example, how many parties are there? The same is happening in bitcoin. Different parties with different opinions not wanting to work together or agree with eachother.