I disagree, you could do a graduated wallet, or you could have an LSP that locks up less liquidity and charges comparatively higher fees. Of course in that case the LSP would never need to charge more than on-chain - you still get *some* “compression”.

Then you're not really criticizing any particular constraint, are you? You're criticizing lightning itself, but the year is 2026 and I don't see too many other scaling solutions around the corner

Working on one with Jan 3 right now bub. There's also ark. And while I may be critical of lightning please do not read what I'm not saying. I don't think we need a scaling solution to replace lightning. I just think we need another scaling solution in addition.