I 've read Gavin's answer on reddit about block size
http://www.reddit.com/r/Bitcoin/comments/1rqexb/87898_kb_block_just_now/Hmm?
The block size must rise, but there are a couple of technical things that have to get done first:
1) Fees have to float. That's what I've been working on. 2) Broadcasting large blocks has to get more efficient. We know how, "we" just have to write the code ("use full bloom filters").
Then "we" will have to convince people that increasing the block size won't Doom Bitcoin To A Downward Spiral of Transaction Fees (just ain't true) or result in 100% Of Hashing Power in a Single Server Closet!
What does he mean when he says that "fees have to float" and also what's the concern of a "downward spiral of transaction fees"?