I never understood this argument. The cost of mining already centralizes nodes to the point where block size is not a factor. People that are able to run cost effective mining setups are also able to support blockchains of any size. Given the current state of mining, how would switching to 10mb blocks increase centralization?
Miner centralization is not without risks, but is fundamentally very different from centralizing economic activity, with different security outcomes.
A dominating miner runs the risk of a 51% attack, which can cause denial of service or censorship, but game theory dictates that the missed opportunity cost is huge. A dominating economic actor makes the whole blockchain an obsolete backend to something like Paypal.
