I agree with you on that, Simon. WHatever functionality is still to be found in email is diminished for all when users start slapping huge attachments into email, instead of using ftp, a link to a file, or even good old uucp to move huge amounts of data.
I sure hope this does not happen! Even a moderately popular site with a 50-100 regular visitors would exceed the present limits if those users elect to be notified by email of new posts, forum messages, ecommerce order confirmations, etc. - The present limit severly restricts many key functions of such sites. At least the way it is now you could petition DH for a higher limit. Lower limits would just compound the problem, and I'd like to see the limits raised.