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"Each team is full-stack and full-lifecycle: responsible for front-end, back-end, database, business analysis, feature prioritization, UX, testing, deployment, monitoring"
"But they also shouldn't be too large, ideally each one is a Two Pizza Team"
Either that's a team with some hugely diversified skills, or that's two car-sized pizzas
I agree that this is a challenge. One needs to slice the domain such that it can be covered this way. But this also means more people. In my experience, moving from "activity oriented" teams to "business centric" teams require an increase of the headcount.
Same, that's why I don't understand how this is supposed to stay a two-pizza team system
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