If (the amount of unconfined transactions > some limit && the last 2016 blocks contain 9x% of 1MB worth of data)
decrease the difficulty by x %
This is in effect just removing the blocksize altogether. It can just grow to whatever size it wants.
No other comment, I fence sit & go back and forth.
Except inflation could be too high and block reward could end too soon, before there are enough fees to support the network.
Actually I think removing the block limit altogether would be a better solution than this.
(So yeah, OP was right about "
but you won't like it")