satoshidice has a very wide dynamic range... doing the standard 2x martingale, it allows up to 17 losses in a row... you won't get anywhere near that at a regular casino... more like 4 or 5 in a row.
the key to reducing martingale risk (for the house) is bringing the min/max closer together.
Why would you want to reduce risk when you're in it for the long haul because you have infrastructure to pay off and the odds are strictly in your favor? Progressive bettors are *great* for Satoshidice. They drastically increase the total amount wagered and the expected house profit depends heavily on the total amount wagered. Even better, they tend to place larger bets than casual betters, which increases the house's advantage because larger bets are cheaper to pay off compared to the expected house profit.