The difficulty was changed to 512 in order to improve the efficiency of the servers. I don't like much it either, but that is the way is it for now. poolwaffle would likely reduce the difficulty if situations permit, but currently they do not.
You would know this too if you searched the thread. Search is your friend.
I though the diff changed because the pool cant handle the whale,
now that it is gone, why not?
Very little of it has to do with the "whale" (almost none actually), since his miners almost immediately switch to way above 512 due to the speed (they were at 1024/2048), plus, as soon as we added the d=xxx param in passwords, he immediately put that on them.
The vardiff change happened when everyone switched from MC. Was just a matter of the server having to keep track of a few hundred miners, and all their recent shares, and mining speeds, and send difficulties out, and then all of a sudden have to handle a few thousand (right now, we're running at about 30k connections/server). Its just too much to keep track of, and saying "nope, its 512" makes the load acceptable
