Heard the maximum stake will be increased to 2048 ETH while the minimum still remain 32 ETH. Will the chance of prop increases by the staked amount? For example 320 ETH validator has 10x chance to propose block than a 32 ETH one. Otherwise merging validators into a big one will just lose MEV chances right?
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Does this create additional risk for the operator since much more eth can be lost from a single validator failure?
yes
Yes, but (probably) actually no.
My thinking is that it's likely in a lot of cases you run most/all of your validators on one machine and a hardware failure or even a slashing would affect all of the ones running on that same instance.
So, when you consolidate, you actually lower your bandwidth requirement (you don't have to subscribe to a subnet for each of your validators) which might actually improve attestation performance with a similar risk profile as running them all on the same machine before. In other words, you might actually be marginally better in terms of attestation rewards.
Edit: I am making the assumption based on the person who asked the initial question that he is not talking about a pool (who have their own risk mitigation strategies), so most people have fewer than 64 validator instances and are likely to run the instances that they do have on a single machine.
agreed - it wouldn't increase your slashing risk unless you were running a lot of validators and are usually prepared to react to incidents within minutes (so if there were a slashing incident, you'd normally have time to shut down the rest of your validators before the others got slashed). i would say there's not enough difference in slashing risk for small operators to pay attention to