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Why bother with off chain complicated solution when there are many projects with serious on chain scaling that require no effort from the user. No need to bother with SMS when you can just use Telegram or WhatsApp. Plus LN doesn't scale well when thousands of nodes get involved. LN is a technologically infeasible theatrical solution that has not been stress tested.

I know of no completely decentralized solution that can scale on chain. Both solutions from Dash/Privex are handled with second layer solutions. As for lightning scaling it would seem to improve with more nodes compared to less as there would be more route availability. What am I missing there?

Both solutions from Dash/Privex are handled with second layer solutions.

Absolutely not at all. They are all on chain with transactions being instantly locked by the masternodes rejecting any conflicting transactions with the already locked transactions. This is not a second layer solution.

I know of no completely decentralized solution that can scale on chain.

Check out EOS or Hashgraph.

There is a little bit of bias in the following subreddit+video but many of them are valid points. Plus we have better solutions than LN which is actually make the network less anti-fragile.
https://www.reddit.com/r/btc/comments/8n4209/why_the_lightning_network_doesnt_scale/