A block size increase “based on demand”, and leaving it to the miners to decide how large the blocks should be “based on demand” is a very dangerous proposition, topcoin360. It will open an attack vector, that would possibly disrupt the network.
If you're worried about a congestion attack with a higher limit then you should also be worried about a DDoS attack with a lower limit. Idk what the exact limit should be, but I know that it should be updated more than once every 10 years.
I didn't expect this thread to turn into a capitalism vs. communism debate (those who believe in free market and those who believe that everyone should run a full node). The only thing I can tell you is the customers will always go to whoever can give them what they want.
Since we're talking about the possibility of a new consensus and not a vector of attack, I think we should discuss the technical details and see if it works in the first place. I've seen a potential flaw in the model I proposed, although it is very unlikely to happen, in theory the excess supply could exceed the actual limit which means the block size limit in the next epoch would be below 0. We can easily fix that problem by introducing a minimum of 1MB which is the current maximum (that would be our starting point).
Open for discussion!