(1) Blocks are essentially nearing "full" now.  And by "full" he means that the reliability of the network (from the average user perspective) is about to be impacted in a very negative way

(2) Leveraging fee pressure at 1MB to solve the problem is actually really a bad idea.  It's really bad while Bitcoin is still growing, and relying on fee pressure at 1 MB severely impacts attractiveness and adoption potential of Bitcoin (due to high fees and unreliability).  But more importantly, it ignores the fact that for a 7 tps is pathetic for a global transaction system.  It is a couple orders of magnitude too low for any meaningful commercial activity to occur.  If we continue with a cap of 7 tps forever, Bitcoin will fail.  Or at best, it will fail to be useful for the vast majority of the world (which probably leads to failure).  We shouldn't be talking about fee pressure until we hit 700 tps, which is probably still too low.