BIP-110 removes or suppresses a paying class of blockspace demand. That directly conflicts with Bitcoin's long-term security transition away from subsidy dependence and toward fee dependence.
Fees Are Not Optional in the Long Run
Bitcoin's block subsidy keeps declining. That is not a theory. It is the design. As subsidy falls, fee revenue becomes more important for miner incentives and for sustaining the cost of attacking the chain.
Demand Still Counts Even If It Is Unpopular
If a user voluntarily pays for inclusion and miners voluntarily include the transaction, the fee market has spoken. The complaint against that demand is moral or aesthetic, not economic.
What BIP-110 Really Does
In practice BIP-110 says the network should override market demand because a coalition dislikes the application consuming blockspace. That makes security budgeting less about open competition and more about social preference management.
Why This Can Backfire
Even if BIP-110 blocked some visible fee flows, it would not create replacement demand by magic. It would reduce transparent fee revenue, encourage private routing and make miner income less honest and less legible.