For the record, I'm not entirely convinced the Minny Fed paper is meant to be an attack on bitcoin. It actually demonstrates one of Bitcoiners' main tenets, which is that Bitcoin's presence can restrain the government's ability to run perpetual deficits.

But I agree with you that we shouldn't be complacent about bitcoin's incentive structures. Even now, battles are being fought over what types of data should be included in the blockspace, and what can/should be done about it...