I was in the same situation until I salvaged a lot of my red items.
It would be great if the max inventory size increased, as I’m nearing the cap again and find myself unwilling to salvage a lot of my remaining stuff.
If Fatshark doesn’t want to increase the max inventory size, then an alternative would be to make it so that Portraits, Hats, Hero Skins, Weapon Blueprints, Deeds and Loot Chests don’t take up inventory spots. Illusions and Art do not take up space, so it should be possible to do this.
With the introduction of Lohner’s Emporium, the amount of cosmetics have drastically increased. Weaves, events and the new class have also introduced new cosmetics. Already we have so many cosmetics that the inventory size is negatively affected. With 4 more classes to come, new weapons being introduced, the store being updated at the rate it is being updated and more events and seasons to come, cosmetics are bound to eventually cripple the inventory size.
Another thing that would help (very slightly) is if Fatshark did something about duplicate hats.