"Which makes me doubt steem becoming mainstream anytime soon. Am I wasting time here?"
Probably not, this just isn't all that different from its alternatives as it purports to be, most likely. And it's not pessimistic in the least to consider it.
The Steemit beta allowed its founders to demonstrate a new model of blockchain function, technological form and mass adoption, and gave its content contributors an opportunity to get more than what they would have gained elsewhere in terms of return on their sweat equity.
It just isn't the second coming, that's all.
Plenty of opportunity here still to be had, especially for those who branch out beyond just blog posting and into some of the other creative endeavors I've seen lately. And especially most especially for those who find ways of capitalising on Steemit's community that don't exclusively rely on Steemit itself.
That is an interesting thought. The value of your connections on Steemit may not end up related to Steemit itself