You're making some very good points and I really like the discussion here with @smooth and @themarkymark. There's a bunch of topics I would also like to bring up here:
- SBD is useful when it comes to having a payment method inside the system not only because it's meant to be pegged, but also because you can't use it for anything else (unlike Steem). Therefore it is high-velocity and can / should be exchanged quickly
- The broken peg maybe isn't that much of a problem when you want to pay with SBD, but definitely when it comes to calculating rewards. If you're supposed to get a 5$ rewards with 50% being SBD (=2.5 SBD), and SBD is at 10$, you effectively get 2.5+2.5*10 = 27.5$ in rewards. So either fix the peg (see below) or fix the rewards calculation to use the market price for SBD
- If you'd want to actually peg SBD to $, why would you not allow SBD to be printed by backing it with Steem?
What happens when we pass 10% debt ratio and continue to grow past it without no easy way to convert SBD to Steem? (This conversion is not suggested any time SBD is greater than $1 USD).
- I'm not sure why that should be a problem at all. Why is debt an issue? The ratio could also be 50% if people think that the best use of Steem is to actually print SBD with it. I just highly doubt that. So as mentioned by @smooth in one of his comments here, the problem is really that Steem has dropped in price so the ratio goes up and therefore SBD look less backed. Otoh, if SBD would go up in price a lot, people would be incentivized to buy Steem in order to be able to generate more SBD.