One of Eth1’s biggest problem is the current state size. Estimated at around 10-100GB (depending on how exactly it is stored), it is impractical for many nodes to keep in working memory, and is thus moved to slow permanent storage. However, hard disks are way too slow to keep up with Ethereum blocks (or god forbid, sync a chain from genesis), and so much more expensive SSDs have to be used. Arguably, the current state size isn’t even the biggest problem. The biggest problem is that it is relatively cheap to grow this state, and state growth is permanent, so even if we can raise the cost for growing state, there is no way to make someone pay for the actual impact on the network, which is eternal.