The current state of conflict storage is such that all conflict information is stored on the victim's node in the database. While the plan described in notes/wc-ng/conflict-storage is admirable, it requires much more work than just shuffling data bits around, and I'm hesitant to start in on it prior to branching 1.7. With that being said, I think that the current state of conflict storage is Good Enough for 1.7 (though could certainly be improved in the future).
Does anybody have concerns about releasing the current format in 1.7? Thanks, -Hyrum