Without a blocksize limit fees will rise in relation to the interaction of the limit of the real world environment and the demand, and this is absolutely not a reason to impose a lower capacity on the system for starters.
This. The big issue isn't block size, it's that we're storing all the tx forever right now. That's the tree that we need to bark up, IMO. It's just inelegant right now. Hopefully a reasonable solution can be implemented or we'll see some kludge like automatic pruning of all tx created more than X blocks before... "Move your coins or lose 'em."
Actually, only storing, say, 5 years worth of data would certainly simplify things... Now there's a flamewar to start.