The minimum balance is there to ensure that the storage of non-archival nodes (including most importantly participation nodes) does not blow up.
This is a consensus parameter so we can imagine that as storage cost decreases, it may be reduced.
(For people not familiar with it, you can see the minimum as a deposit to rent space to store assets, like deposit on lockers at the swimming pool (for a real-world analogy). It is there to prevent people to misuse the lockers in such a way that honest newcomers always have an available locker for their assets. You get the deposit back when sending out the asset, or in the case of the swimming pool, when you empty your locker.)
Note that holding an asset on Algorand costs 0.1 Algo of minimum balance. This is currently much less than $1 and this can be recovered when selling the asset.
Compare to Ethereum where every transfer of the asset requires to pay a fee much higher than $1. And contrary to a minimum balance requirement, the fee is lost forever.
There is work to lift this limit soon.