Interesting debate.
First of all, my opinion: I'm in favor of increasing the block size limit in a hard fork, but very much against removing the limit entirely. Bitcoin is a consensus of its users, who all agreed (or will need to agree) to a very strict set of rules that would allow people to build global decentralized payment system. I think very few people understand a forever-limited block size to be part of these rules.
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My suggestion would be a one-time increase to perhaps 10 MiB or 100 MiB blocks (to be debated), and after that an at-most slow exponential further growth. This would mean no for-eternity limited size, but also no way for miners to push up block sizes to the point where they are in sole control of the network. I realize that some people will consider this an arbitrary and unnecessary limit, but others will probably consider it dangerous already. In any case, it's a compromise and I believe one will be necessary.
Realize that Bitcoin's decentralization only comes from very strict - and sometimes arbitrary - rules (why this particular 50/25/12.5 payout scheme, why ECDSA, why only those opcodes in scripts, ...) that were set right from the start and agreed upon by everyone who ever used the system. Were those rules "central planning" too?
I tend to agree with Pieter.
First of all, the true nature of Bitcoin seems to be the rigid protocol as it helps the credibility among masses. Otherwise one day you remove block size limit, next day remove ECDSA, then change block frequency to 1 per minute, then print more coins. It actually sounds more appropriate to do such changes under a different implementation.
Then I can't help this: With such floating block limit isn't everyone afraid of chain splits? I can imagine a split occurring by a big block being accepted by 60% of the nodes and rejected by the rest.
How about tying the maximum block size to mining difficulty?
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The difficulty also goes up with increasing hardware capabilities, I'd expect that the difficulty increase due to this factor will track the increase of technical capabilities of computers in general.
This sounds interesting.