Well, some people didn't learn from the history about cross-subsidizing. So the time to start learning is about now.
https://en.wikipedia.org/wiki/Conglomerate_(company)Edit: one more Wikipedia link that is relevant both historically and currently:
https://en.wikipedia.org/wiki/Hong_(business)I wonder if it is possible to produce any theoretical results on the conglomerates:
1) mining pool integrated with an exchanger
2) mining pool integrated with a service provider
3) two or more mining pools (one bitcoin, other alt-chains) joined together through an exchange
Cross-subsidies may be a new frontier. Conglomerates became popular after 1960 to deal with the variance in the dividend income. They still exist in a vastly narrower range, primarily to extract the additional profits from cross-promotion and unified bargaining.
Using your terminology a conglomerate would convert the green line to a green plane: high risk and high variance wouldn't be the opposites but a pair of coordinates on a plane.
Limiting block size creates an inefficiency in the bitcoin system. Inefficiency = profit. This is a basic law of economics, though it is usually phrased in such a way as to justify profits by pointing out that they eliminate inefficiencies. I am taking the other position, that if we want mining to be profitable then there needs to be some artificial inefficiency in the system, to support marginal producers. Of course that profit will attract more hashing power thus reducing/eliminating the profit, but at a higher equilibrium. However, I am not too worried about this aspect of large block sizes. It is a fairly minor problem and one that is a century away.
This is fairly common misconception that the only way to pay for the space in a mined Bitcoin block is with fees denominated in bitcoins. But this is not true when a miner is integrated with an exchange, because an exchange can shave commissions on both sides of the transactions.
Imagine for a moment that Bitfury branches out into Consolidated Furies and spawns Hryvnafury, Roublefury, Eurofury, DollarFury, etc.; all of them being exchanges. It can then easily outcompete pure Bitcoin miners because it can directly funnel fiat commissions into electric utility bills without having to go twice through the fiat<->coin exchange.
Edit: In fact opportunities for integration are not limited to mining + coin exchange. Imagine for example Marijuanafury which does two things demanding lots of electricity: Bitcoin mining and indoor marijuana growing. If only somebody could come up with new optical ASIC technology that is pumped with energy via photons at the same wavelength that stimulate photosynthesis...