A great piece -- excellent analysis and useful (though very radical...) policy prescriptions, but I have one quarrel: Daly's argument against the claim that the economy could continuously grow in a non-physical dimension seems to me to be circular.

If one defines value as price times quantity then if follows that increasing "real" value always implies increased quantity. But that is not the only way one could define value. Value can also refer to welfare, well-being, happiness, etc. That is precisely what the alternatives to GDP try to capture and such value could indeed increase divorced from increased physical throughput.