Personally, I see the miners who are refusing all transactions (so their blocks propagate faster, less chance of orphans), who are only mining for the reward, completely ignoring that the purpose of mining is to process transactions in the first place, as being a bigger problem than Satoshi Dice is.
As long as Satoshi Dice's transactions are following the rules, that's all that matters to me. I don't care what the purpose the transactions are for. Not my business.
Look at the block explorer from time to time. I see plenty of found blocks that have 0 transactions in it, just the reward generation.
That is the big problem.
-- Smoov