That was my point at the start.

It would seem that Litecoin can't handle this number and size of transactions.

Now the block rate is not the issue since if the block rate was lower then the blocks would just contain way more transactions (which would possibly be worse)
So what was the actual problem anyway?

I guess BTC-e caused their own problems by messing with the code and their transaction lower-limit.
But did anyone else have issues? (other than the large txn's and thus the large block-chain and large wallet)