People used to say stuff like "solar power won't work" or "it's a fraud". Interestingly solar is still going on strong and the bitcoin ledger can still fit on a modestly sized SSD.
Pruning could be a long term solution - remove any fully spent transactions since they are no redundant. This article suggests that would leave under 1GB of data. Ditto some blockchains (like Ethereum) allow mining or block signing without the entire blockchain ledger - Bitcoin could probably migrate to that if it wanted. Other blockchains have yet other strategies still.
PS. "Infinite capacity" is always going to be a stretch in terms of storage. However I rather think you may be exagerating there ;-)
RE: Blockchain will not work