So, if I understand correctly, a DoS attack would have to be very well funded to get priority above any transaction that includes a moderate tx fee?
Exactly. Right now about $8,000 a day is being paid in transaction fees - an attacker would have to spend multiple times that per day to cause problems. Of course, transaction fees are ultimately just a supply-and-demand market - if an "attacker" wants to outbid all other buyers for a limited resource, are they really attacking anything?
There are other issues too, e.g. the DoS attack vulnerabilities caused by Bloom filters, but there are fairly reasonable ways to fix those issues. Again, when you put a price on something, so-called DoS attackers become well heeled customers!
We've always known Bitcoin faces serious threats, e.g. scalability, mining centralization, blacklists, etc. Whether or not they're going to be solved is an open question, however it is clear there do exist potential solutions.
There seems to be an accelerating number of great developers getting involved with Bitcoin, either directly or via privately funded startups. It is my belief that with the core developers and the consistent influx of new interest, Bitcoin has a great chance of overcoming its growing pains. I have faith, and I wish I had the technical aptitude to truly understand the depths of the technology and contribute to its success in a more direct way.
Thank you for your thoughtful response and the work that you do for Bitcoin.
Thanks!