Does the block size limit in 0.7 limit the maximum number of tx per second?

[Amitabh S]

We know that blocks can be mined at the rate of one every 10 minutes. Since 0.7 clients enforce a max block size, we also have an upper limit on the number of tx a block can contain, and therefore the total number of tx in an hour (or per second). If sites such as SatoshiDICE and others start spamming the blockchain with dust outputs, will that not eventually choke the network?