Why do you think this proposal wouldn't work to mitigate such an outcome?
I don't even understand that proposal but from the little I do understand, I don't see how it relates to changing the maximum block size. Maybe you could rewrite it in more clear, formal terms?
This is how I currently understand it:
1) Remove the block size limit.
2) Allow clients to set their preferred bandwidth.
3) Let the free market work between these two opposing preferences. The more miners push the block size beyond the clients' collective capability to download it, the more they run the risk of being orphaned by a smaller block better suited to the current bandwidth.