What about the UTXO set bloat? Unlike inscriptions, the UTXO set cannot be pruned. Every node has to store it and its usually stored in RAM which is way more expensive per GB than long term storage.

Sure, there is no witness discount to store data in the UTXO set, but is the network correctly pricing these resources?

Prices in the real world always change based loosely on supply/demand. Discounts and premiums come and go. But today, we are stuck with the discounts that were set in 2017 (somewhat arbitrarily) by segwit.

Even as fees per vbyte are variable, the relative discount to store witness data is as unchanging as the relative premiums to bloat the UTXO set.

However, over the last 5 years, the costs of storage (solid state and spinning disk) has fallen dramatically while the cost of RAM is relatively flat.

Source: https://ourworldindata.org/grapher/historical-cost-of-computer-memory-and-storage

If segwit premiums and discounts were to track the cost of resources consumed, the premium to bloat the UTXO set would be way higher relative to the witness discount today as compared to 2017.