I know this is something drummed into gamblers day 1, so I understand the instinctive reaction and I'd echo it to somebody relying on a staking plan to make a profit on otherwise unreliable selections but I've been doing this for a while and have detailed records on this sheets picks to June last year, 4,000 bets.
If I repeated my longest losing run ever of 27 bets, the stake increase in the OP example would lead to the next bet being £14.68. Not £500, £5000 etc. I have stops in place to never let the stake go out of control (have to with full automation, I never touch it) and theyre pretty conservative.
As others have said, a good staking plan can seriously enhance a strategy just like a terrible one can kill it dead, its too often something Ive seen people dismiss over the years in favour of blindly sticking to level stakes regardless of balance, run of results or individual bets value.
It just comes down to confidence and running the numbers to give you that confidence, yesterday morning I had a run of 9 losing Aus dog+horse races, I recovered it with 3 winning races, making a few 0.0x% than I would have otherwise with increased stakes. Do that 150 times and it starts to add up.
Each to their own though, if I lose everything on the back of a run of 50 losing bets v 200 losing bets then the strategy is obviously bs anyway given its mostly the top end of the market I play in, would never recommend progressive staking to somebody blindly without knowing their results. That would be madness on their part.