Hardly.  Block size and tx fees will put a cap on low value (as in utility not necessarily nominal value) txs.  All tx compete.  To date that competition has been non-existent because of massive subsidy and low tx volume.  In time the subsidy will decline and tx volume will increase.  The SD model is inefficient but currently the resource they are inefficient with is abundant.  Economic theory of finite resources (think oil) shows us the market will adapt.

Satoshi Dice killing the network is no more likely than Hummers using up all the oil.