I was really buying into your thesis but then I thought about Steem and realized that just because it's not the "most capable" chain, doesn't mean it can't survive or thrive.
I do get the correlation you're trying to make vis-a-vis EOS and the Death Star, but that being said, I think the higher quality tokens out there -- if not generally all alts - will not be affected much by the release and launch of EOS, because I don't think anybody is proposing to use EOS tokens as a medium of exchange.
Sure it will be and can of course be done, but it won't be the use. And other tokens like SBD and LDOGE and DOGE and BITB and BURST can all definitely qualify as that. They are intelligently decentralized, and are created in the proper supply with the proper inflation to scale. EOS will just be dumped on the world and will (as you pointed out) be so deflationary, that hardly anyone would consider spending it, thus making it only gain velocity by being used in DAPPs.
I could be wrong and this could all happen fast, and my alts could eat doo-doo. Or, it could be the case that the alt-market is already pricing in risk from new competing chains and if it weren't for EOS and other ICOs, the remaining high market cap alts would be even higher market cap alts....
Anyway, these are my thoughts...