I don't see the problem with converting HBD to HIVE when the price is low to build your stake. Sure, you'd be creating more HIVE tokens (inflation) but you're also using your stake to vote, curate and strengthen the ecosystem. If conversion is a mechanism built into the protocol, why not use it?
Dumping HIVE on the market is a different story, but the main dumpers are recipients of the DHF.
Stakeholders of HIVE need to vote on the return proposal so that only the most useful projects get funded. Too many dumb projects with vague roadmaps and no accountability get funded for way too long.