If you ask anyone in the Bitcoin space what the biggest challenge for Bitcoin is, you will likely hear the answer “scalability”.
This doesn't make sense. If we wrap transactions from separate addresses into one address, we break the chain of ownership and facilitate theft. The sending addresses need to be stored
somewhere or how can you go back and verify coins were legitimately exchanged? Are all the addresses a Schnorr signature substitutes for stored off-chain? How do you know coins from a Schnorr signed address weren't created out of thin air?
Even if there
are spam attacks to flood blocks with transactions with many sending addresses, I don't see why we don't make it useless to do that by increasing the blocksize. Why does
every proposed scaling solution require 2nd-layer pieces bolted on to Bitcoin instead of just adjusting Bitcoin itself as Satoshi originally intended?