@Peter R: Having followed the discussion on this thread, I must say that I'm quite impressed by the work done for this paper. Bravo !
I still have to read the end of the paper but I've got a question related to the impossibility of an unhealthy fee market (chapter 7).
According to you, what would be the consequences of a new propagation mechanism like IBLT (see https://gist.github.com/gavinandresen/e20c3b5a1d4b97f79ac2) ?