By the way, I'm seeing rising interest of a flex cap which only raises the block size when fee collected in each block is higher than block reward
interesting idea. but to up the 1MB limit, we need fees at ~0.0125BTC ( ~2.5$ ) if you assume 2000tx (~1MB worth) per block.
that a pretty high fee! so much for "virtual free transactions."
and at that point a shit load of TX wouldnt happen on the network, this method would very quickly make bitcoin no able to handle micropayments.
maybe if fee where >1BTC the limit would be pushed up would be more reasonable.