The general idea was announced a while back but the details are even more strict than i expected.
Dont get me wrong i think this is an absolutely great move. The matrix.org homeserver has waaaay to many users and its not healthy for the matrix ecosystem. This will cause people to move to other servers, because 1MB is almost unusable and that is probably the intention behind this move too.
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Sounds like an attempt to curb their massive abuse problem.
On Matrix, you can actually upload files using special message types that don't even show up on normal clients, but persist forever... you can imagine the very illegal types of content that people post using such methods.
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