I disagree. The current altcoin rise is based on pure pump speculation from
statements such as yours, which only feeds into what they are attempting.

At the end of the day, majority of altcoins are worthless and not as secure.
If noobs think those are viable alternatives, they will soon get what they deserve.

Don't mistake a good old fashion altcoin pump, with actual utilization.
If you look at the charts, they are clearly pumps.

I accept your points, but they are orthogonal to my main contention, which is the implication the Dev/Miner consensus look to have ground to a standstill with vastly deleterious effects

If they can not even get through a larger blocksize even as a stop gap of say 8mb or something, in the face of huge user demand, which btc community always sought, what does this mean for any meaningful dev on anything else.

What good are hash protected coins if they become unable to be moved?

Your so right we do have massive btc adoption, but now cannot cheaply spend our coins....!

People are not buying altcoins because of instant send or low fees.
That makes no sense since the other person in the transaction would need to accept that alt as well.
There is no worthy infrastructure or economy for those alts.

The reason why those alts are rising is not adoption by noobs, but whale attempting to trick you.
They are using the higher bitcoin fees to take advantage. This is 2013-2014 altcoin pump all over again.

Eventually, majority will be converted back into btc, like always.

People are buying alts for profit hedge and features.

Fictitious whales are not an argument against real division and to much friction in the BTC economy due to high fees, and a choke point via block size.

If you were knowledgeable, you would know that the average bitcoin user is ignorant of the blocksize issue.
The average user sends a tx and walks away, never participating or paying attention to the arguments.

The average bitcoin user is not buy altcoins as hedges.
The average bitcoin user has less than 0.5 btc, they aren't going to risk that into an alt.
Only the whales are buying those altcoins as pure speculation.
The Dumps will come like always.

Cryptocurrency is something like a dot com bubble where people are speculating on its future value.
Blockchain is this trendy thing where people want to implement it without considering if they really need it.
Don't be surprised to see many cryptocurrencies fail, and certainly many blockchain start ups will fail, just like the dot com bubble.
Without real world use, cryptocurrencies have no real value. People who believe a bunch of hard to compute 1's and 0's as a pure store of value are seriously misguided. But then just look at how many people are only interested in BTC as a get rich quick scheme. Considering BTC as a pure investment scheme it nothing short of a ponzi style pass the bag holder scheme.

As far as alts go, there is a lot of IOU trading occuring, but very little actual transactional use. Bag holders beware!
Ethereum is designed to be a distributed computer. Ether is the fuel for processing on this (once immutable) blockchain. Anyone who thinks it has value as a currency should try downloading the full blockchain. It is not efficient for that purpose.
Litecoin is a simple bitcoin clone with a few tweaked parameters and different proof of work algo. The creator has shown no innovation for this coin beyond a simple clone ever. No wonder it is dropping down the charts. If used heavily, it runs into the same problem as BTC.
Dash at least shows some technological innovation. However, its anonymity features are not very efficient (due to the number of UTXO's created). As a BTC fork, if used heavily, it runs into the same problem as BTC. At least it is showing to be adaptable change. It is not yet known how the masternodes would cope under real world stress.
Monero and other privacy centric coins at least have black market value!

Going back to BTC, at least is has some real world uses if it is not allowed to be strangled by artificially limited capacity. It might not be useful for buying a pack of rolling papers, but fiat can probably do that much more efficiently than any lightning network bank channel.

Good points, the real world use of the BTC blockchain is a system to organise you activities around, a ledger, much like you act in a manner that you see will fill your bank account ledger with money.

at the moment the ledger is fail, as its becoming hard to change the ledger as coins are struggling to be moved

Probably better to say it is getting harder and harder to get your transaction written into the ledger.

Zero confirmation economic risk has changed from the disadvantageous double spend propagation attack to one where the transaction does not confirm at all due to restricted transaction processing capacity, mempool forgetfulness, and selective transaction relay.

To reduce the amount of spam that can be created by sending free transactions, an emergent consensus minimum fee mechanism could be introduced. All transactions sent before the minimum fee change should eventually be confirmed, and new transactions below the minimum fee consensus should not be allowed on the network. Transaction relay rules follow the same minimum fee consensus rules. When the non-forgetful transaction pool reaches a certain size (yet again an emergent consensus parameter), the miners start to demand increasing fees. As the transaction back log clears, the transaction fee requirements can be reduced.
Result, zero confirmation risk is significantly reduced and that is how you get instant payments assuming a merchant is willing to accept a level of risk.
Emergent consensus is a dynamic system which does not rely on code changes that are too slow to deploy.

Basically emergent consensus allows the original satoshi vision to work, by solving the DoS spam problem.