In days of yore, your and you're were separate words. Should it stay that way today?

I can’t count the number of times some bullet head in an Internet debate has responded to what I though was a logical exposition of documented facts with a simplistic and grammatically silly “Your stupid.”

Confusing your and you’re has become so commonplace today that there’s been talk of going with the flow and dropping the spelling distinction. Good idea or wrong-headed? If we decide all three words can be spelled “your” do you think you will always be able to discern from the context which is meant?