In general, I agree that giving large amounts is not right.
I think the best way to give larger amount of Testnet is with a deposit that is refunded upon return.
It could be fairly easily automated... perhaps that is less greasy and still fills the needs of people who need (or want) more than dust.
I give 0.005 TBTC every ten minutes on our faucet... which I think is more than enough.
It gives people dust for free without being greasy or battling dirty (
) testnet miners.