Time to revive this thread again. Gavin is now taking action on the 1MB limit.
https://bitcointalk.org/index.php?topic=1074701.0;allEdit: I doubt Bitcoin will remain viable in two years time if the 1 MB limit is not addressed, so I will not be able to revive this thread a third time.

Yep, and I would really like to see Jeff Garzik explain what his solution is now since he has had
4.5 YEARS to consider it further.
A solution other than do nothing, lets crash into the limit (which he never liked in the first place), and see what happens.
More like this maybe:
We should be able to at least match Paypal's average transaction rate...
-static const unsigned int MAX_BLOCK_SIZE = 1000000;
+static const unsigned int TX_PER_MINUTE = 1400;
+static const unsigned int TX_AVG_SIZE_GUESS = 256;
+static const unsigned int MAX_BLOCK_SIZE =
+ TX_PER_MINUTE * TX_AVG_SIZE_GUESS * 10 * 2;