That's very interesting, so what he's saying is that the network should have no problems handling an increase in the amount of transactions then. Was this limit put in to prevent people from spamming transactions until there was enough network hashing power to cope with an increase if I'm understanding this correctly?
Here's some more interesting early history
For what it's worth:
I'm the guy who went over the blockchain stuff in Satoshi's first cut of the bitcoin code. Satoshi didn't have a 1MB limit in it. The limit was originally Hal Finney's idea. Both Satoshi and I objected that it wouldn't scale at 1MB. Hal was concerned about a potential DoS attack though, and after discussion, Satoshi agreed. The 1MB limit was there by the time Bitcoin launched. But all 3 of us agreed that 1MB had to be temporary because it would never scale.
Unlike current Core devs, Satoshi was not obsessed by adversaries.
He thought Moore's law would keep up with the scalability demands, and
he was ok with validation restricted to specialized nodes "with multiple GPU cards" as
he puts it in the message to Hearn.