concern of a "downward spiral of transaction fees"?
If blocksize isn't scarce at all why not include every transaction that pays at least 1e-8 BTC which you've already received and validated? If it's purely orphaning that influences your decision why won't all your spending go to bandwidth (neutrino links to other miners and such

) and none to POW? etc.
Ok i got the first part of your answer but for the second part i'm not so sure. You mean that bigger blocks will likely cause more orphans?
Anyway thanks for clearing it out.