The general idea was announced a while back but the details are even more strict than i expected.
Dont get me wrong i think this is an absolutely great move. The matrix.org homeserver has waaaay to many users and its not healthy for the matrix ecosystem. This will cause people to move to other servers, because 1MB is almost unusable and that is probably the intention behind this move too.
Matrix
The secure messaging protocol.
This will cause people to move to other servers,
I'm betting it will cause more people to leave than to migrate. Which is exactly as it should be given the objectively god-awful UX.
This will cause users like me to finally dump this flaming pile of garbage and return to XMPP.
Or that :) Doesnt really make sense tho. Any XMPP server could implement something like this if they wanted. Would that then make you dump XMPP because one server did it?
Like you said, matrix users are concentrated in one server in a way that XMPP isn't. If one XMPP server introduced this system, it would have a much smaller impact than this change will have on matrix users, so that's a factor in assessing the risk of future problems with the two networks.
Personally, I'm undecided. I used XMPP for years and now I'm using matrix (both self hosted). Neither is perfect. Element has some shortcomings that are addressed in element X, but not all the other features have been migrated. I found the other matrix client I used for a bit, "fluffychat", is better than element but has some other bugs. I end up switching keeping more than one client installed and switching fairly often to work around bugs, which is not ideal.
Sounds like an attempt to curb their massive abuse problem.
On Matrix, you can actually upload files using special message types that don't even show up on normal clients, but persist forever... you can imagine the very illegal types of content that people post using such methods.
Some people are such pieces of shit, why do they have to ruin matrix for the rest of us