The good: hard to find any, but this does throw down the gauntlet to developers who care about “real” transactions on Bitcoin. Those use cases need to be made compelling enough for people to be willing to pay the higher fee to crowd out inscriptions

The bad: There are monke jpegs on the timechain. Need I say more?

If we make a good faith determination that there is a serious security threat to Bitcoin in the form of ddos attacks via inscription spam, a node-level or even protocol level change might be warranted. If not, any change to Bitcoin just because we don’t like monke jpegs would be censorship, IMO.