I think it's decentralized enough. I would rather have speed and reliability rather than 100 witnesses receiving pennies if I'm being honest. Imagine having to manually vote for 100 witnesses. What a nightmare.
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Not sure. Pro and cons of both. I'm keen on true decentralisation over money but I've yet to find any projects which work well and are truly decentralised. No matter what the majority of the power always seems to end up in the hands of the few.