Essentially what I'm trying to figure out is a mechanism for blockchain compression so that we can drop very old txs with minimal to no loss in security.
Hardcore "compression"; Implement max blockchain height of 100,000. When block 100,000 is mined, drop the oldest 50,000 blocks. The remaining oldest block is the new "genesis block". Any remaining unspent outputs on the dropped blocks are given to the miner.Bam, done.
