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And it can't be stored in witness, so can't this potentially clog up the mempool even worse?
It's worse than "clogging" the mempool. It "clogs" the UTXO set which all nodes store until they're spent. The UTXO set is the current state of the ledger. The blockchain is the history that created the UTXO set. All nodes store the UTXO set to fulfill bitcoin's monetary use case.
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I see. Any obvious solution?
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I don't think so. AFAICT it's why they're so impressed with themselves.
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I like Bob McElrath's response on twitter.
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lol
You are vandals and morons and this idiotic use of block space will be priced out just like Satoshi Dice.1

Footnotes

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