I agree that this possible new feature would definitely be off by default.
I like Craig's idea to use the jdk7 temp file handling. I propose to this project keep it simple (at least at first) and start with this as a jdbc41 only feature.
Many people use pgjdbc for OLTP style transactions and wouldn't ever want to spill to disk. This is why (IMHO) the algorithm that determines under which stress
condition this feature uses (assuming it is enabled) is so critical.