So, for each output below 0.01BTC (threshold which depends on bitcoin value, currently ~$40), every time the output halves in value, the transaction fee must increase by TXFEE.
LOL
Bitcoin value for me is pricless now please put it in code....
Would be reviewed periodically by developers - much like the transaction fee, now at 0.0005BTC. If bitcoins jump to $100 or $200, the minimum transaction fee will probably be reduced to 0.0001BTC. What I mean is, with fiat currency, there is a minimum transaction - $0.01. Actually, in Canada, isn't it CAD$0.02 ? I gather some European countries don't even use 0.01 coins anymore.
So the devs would introduce a minimum recommended transaction output of 0.01 BTC. According as 1 BTC buys more and more potatoes, the minimum transaction should be reduced accordingly. In any case, the minimum transaction output should ALWAYS be greater than the minimum transaction fee, so that these spammy outputs can always pay for their own redeeming and be eventually pruned.
With fiat, $0.01 is the minimum transaction because that is the smallest unit created. In Bitcoin the smallest unit is 0.00000001 and should be able to be spent just like a penny, but it is uneconomical because of the way Bitcoin is transferred you usually have to pay a txfee. If you are just discovering this, you need to go back and read some more. With that, you can still send Bitcoin without a txfee, good luck getting it included in a block though. I used to send Bitcoin all the time without a fee and it was usually always included in the very next block. The problem is not Satoshi Dice, the problem is that Bitcoin is still being developed and tested. I think this needs addressed by the developers and is not so much of a problem now, but will be in the future if adoption and price continues to rise.
That all being said, "can" Satoshi Dice do something about this to help the network short term? Yes.
Would it cut into their profits? Yes
Will they do anything? Probably not...