From what I understand a node will not include transactions in it's blocks unless the transaction includes a fee that meets the node's requirements. So in the case of a node setting the fee to 1,000 it would likely never include any transactions in blocks it generates, which means it will miss out on any transaction fees other nodes would have gotten. There really isn't a reason to set a nodes requirements higher then the rest of the network since you are basically just pricing yourself out of the market.

You want to send someone a payment for 10BTC and it puts up a warning "it's going to cost 1010 to send the BTC?"