I don't see the problem. Raise the max block size limit and problem solved.
Raising the max block size would make the problem worse, since even more SatoshiDICE transaction spam would be permanently etched into the block chain, with no possibility of getting spent.
So who gets to pick who gets to spend what they want however they want? Just because YOU and HIM don't like SDice means they don't get to use bitcoin??
I have an idea. How about you go print your own fiat and regulate all you want. If you're worried about SDice wasting satoshis or the blockchain getting large then you don't understand bitcoin. Neither of these are a "problem". Stop fear-mongering.