what i don't get is why isn't Gavin moving to increase block size now as opposed to when we're in the middle of the next bubble or two when tx size will have surely increased along with price and his back is against the wall? i'm not advocating this, just asking the question.
he's already shown a reticence to make changes to the protocol. not that i'm complaining, mind you, as i think he's done a stellar job as lead dev. but at that point, it may be such a political hot potato that nothing may get done at all.
The block size may not need to be increased if m of n oracle side chains can be used for most transactions. The main chain would be more of a backbone chain being used to settle side chains and other major transactions periodically. Bitcoin would be primarily used as a store of value and transfer of major value. This is in line with you thoughts of bitcoin being a reserve currency. We shall see how it plays out.