I thought you said your idea would not raise the block size?
a block is added to the blockchain containing a body with both hashes and transactions.
Doesn't this mean that the block in the blockchain would be 250 bytes per transaction plus 32 bytes per hash times 31,250 transactions? So each block would be:
(250 +32) X 31,250 = 8.8 MB?
Since the current block size is 1 MB, and you are creating blocks that are 8 MB, it sure sounds to me like you are increasing the block size.