That's a very nice write up from Jeff. You can tell he is trying to walk a very tight line, presumably because he is worried about Maxwell, the Saruman wannabe, but he still finds it right to speak out, and do so fairly forcefully.
Jeff has a unique opportunity to make a name for himself, if he was inclined, because he is perceived as being in the middle and untainted. He further seems to be the embodiment of the ecosystem's current dilemma in trying to manage complex self interests with not wanting to lose "positions" and "favours".
You have the exchanges/users who of course can force a blocksize increase, but they would rather not for practical and other obvious reasons. You have Gavin who clearly knows where we have to go and how to get there, but has to manage all the other's practical considerations. You have Maxwell, the Saruman, who thinks he is smarter than even Sauron, and has somehow managed to acquire perceived control in informal ways, perhaps having learned from his experience while extensively contributing to wikipedia as to how to acquire informal authority and perceived "power" in open source systems and exercise it, hence the "magician" in our metaphor, (does anyone have a CV of gmax btw? I was trying to find his education/background, but without luck, it would prob be interesting if anyone can share it) who obviously is not in any way open to persuasion as he wants "my precious" at all costs and will, seemingly, go to all lengths to acquire it.
Then you have the miners who are most directly at risk of loosing their income, burn their investment, go bankrupt, etc as well as the ones who most directly profit from a wider network effect, higher prices, etc. Unfortunately there are some communication difficulties with some of them, so having a language and culture barrier. Stuff does still get through, but unfortunately the "barriers" do necessarily add complexity, but that seem to be changing and quickly.
However, because of this added complexity, it seems to me that the miners will not adopt BIP101, but they do seem to have full consensus, within their ranks, in favour of implementing 2-4-8, hopefully as soon as March. I'd, by far, have bip101 starting at 2mb so as to avoid another hardfork because there is no reason for it when we can just softfork down instead, but that seems unlikely to gain miner consensus. So, while 2-4-8 is not ideal, something is better than nothing. Furthermore, if they do go ahead with it, it will hopefully humble Emperor gmax, show that hardforks aint that bad, that increasing the limit isn't armagedon, etc., thus making the second hard fork easier (hopefully).
It further seems to me that the ecosystem is "mobalising". We can expect companies to perhaps form some sort of alliance, but even in it's absence, to hire reference developers. We can expect the miners to do so too. In fact there are indications/statements to suggest that they both are right now and as a matter of priority.
So, I am not sure what jgarzick is working on right now, but I am sure he can find handsome employment if he wished. Therefore, if I was in his position I would have no concern at all as his reputation is in no way tarnished, but, to the contrary, stands taller than gmax's et al.
Gmax on the other hand, even if he "wins", would find it to be a Pyrrhic victory, for despite his assertions that "bitcoin is impossible" or is only possible because of 1mb, he will find that bitcoin does work, its ingrained incentives do work, and that bitcoin was built and designed with the primary aim of routing around gollums, Sarumans, Saurons, their minions, "precious" rings of power. etc.
To conclude, I was reading some earlier comments and I'd say that there is no reason to lose faith. I have no doubt in my mind that the blocksize will be increased, and will do so within months. It is in the interest of every single stakeholder to do so, except for Sauron, thus it will be done.