^ Did you read the entire post? The OP fully addressed the effect on fees:
He neglects that there is no reason to pay fees, if there is no limit on supply.
just because there's the POSSIBILITY of 20MB doesnt mean you HAVE TO use it.
Since there is no marginal cost in including a transaction to the current block, a rational miner will always include a transaction with a non zero fee,
before it is included by any of its competitors.
Therefore a lower bound on fee will not work without a cartel or without a competition for space.
I prefer algorithms over cartels.
then why does a transaction with a 1 satoshi fee take longer to process even though we are not at our limit yet?
explain me this.