I ended up changing the hot wallet client code such that it never spends the dust outputs, but instead merges them whenever the wallet stakes. That is free to do, and so the cost of handling the dust is passed on to all the full nodes in terms of bandwidth and storage, but at least the UTXO set isn't being polluted.
Here's an example of a staking transaction tidying up a bunch of faucet dust.
hi dooglus,
will this be included in the official wallet?
I am not certain what method dooglus is using on Just-Dice, though I expect he using the commit that is already incorporated into the client.
By setting flags :
combineany=1
splitsize=n
combinelimit=n
You can control how your wallet handles staking, including if it will automatically combine dust from other addresses.