I don't know how it "defeats the purpose of masternode" when masternodes are built to process payments not to prevent people who have a lower amount of holdings to be excluded. I am not sure where you are getting that this is turning PoS into PoW. Its still PoS with the power of many instead of the power of a few. Because it offers masternode pooling doesn't change the PoS factor and PoW does't always require a pool anyway. There is solo mining as well. Many of the coins are masternodes that have higher profit margins. Many people never heard of most of the masternode coins out there. I doubt many people can name 10 without looking them up. I am sure you heard of Pivx, Deviant & Redd Coin just to name a few.
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