It's a well written post, however, I disagree with a few things (or just see them from a different perspective).
You first talk about "extraction". I honestly hate the way it is often used in Splinterlands and I also believe it is being used the same way for Hive. Everyone is an extractor by definition, unless they plan to stay in the ecosystem forever. However, only those who take their profits constantly are called extractors. Is there any difference between someone who has been here for 3 years and sold everything as soon as they could and someone who has been here for the same time but didn't sell anything until after 3 years when they sold it all at once? Both extracted as much as they could in the same time frame.
Is someone who plays SPL manually on rented cards and rented SPS and managed to profit and sell everything periodically an extractor? In my opinion, that's not an extractor. It's someone who has learned the game well enough (and manages everything well enough) and is proving to us it is possible to do that. That has a lot of value in itself. It attracts others to try to do the same. Not everyone will be good enough to make it. And the more people that do this, the harder it gets. It also increases the returns to the owners of those assets.
To me, an extractor is a bot farm where very minimal (or not) gain in each account, replicated over 1000s of them, making it worse for everyone else. It doesn't matter if they sell immediately or not.
The same can be applied to Hive. If someone writes quality content, does it matter if they sell everything right away? We don't know that person's situation. Maybe they have immediate needs, maybe they believe Hive will go down in price, maybe they want to invest in something else. The Hive post is their contribution and the rewards are theirs to do whatever they want. Isn't that the beauty of crypto? I hate the "model behavior" and "bad behavior" arguments for that reason. If I put $10k into Hive and make terrible posts, should I get higher upvotes than someone who doesn't put anything but makes great posts? Owning more Hive already has several benefits, including giving higher upvotes (which half goes to the author and the other half goes to the voter). That should affect the upvotes you get yourself.
That doesn't mean there can't be abusive behavior in the contests. I have never participated in the art contests, since I have no talent for art. I do participate in the other ones. Only very recently I found out that they give away packs to the art contests, which they don't for the others. I don't really know why they do that. They probably should only give out packs to those who have a spellbook, although, since there's a free-to-play mode now, there might be some legitimate players without one.
As for the low HP on Splinterlands players, I think that's natural. Most people came for Splinterlands. Without it, I wouldn't even know about Hive. If one day I stop playing Splinterlands, I'm 99% sure I will also leave Hive. I'm pretty sure that's the stance of most Splinterlands players. Many don't even know about Hive, they just play the game! Not only that, but most of us don't have infinite money. If I have X to spend in this ecosystem, I'd rather put it directly in Splinterlands. I can buy more cards to give me a better chance in the games or SPS to earn a little more. That's more important to me than having a bit more HP and a bit more voting power. Not only that, but it's also not easy to put money in here. The only way I know how to put money into Hive/Splinterlands is to buy credits. This is mostly only good to buy cards, although, with some CL cards so close to burn value, it's possible to convert $ to DEC without losing too much.
As for what Splinterlands has to gain from the contests, it's a lot. There are those who sell everything to outside the system. But that means there's someone else buying. And there are many who fuel their Splinterlands purchases with the Hive they earn from those posts. That's what I do. I leave the HP powered up and the liquid part I use to buy DEC or SPS.
I always appreciate a different perspective :)
Again - my biggest issue was: The people are doing exactly what was stated. They are not at fault... Thus if we wish to change things, we must change them through education, not shame and we must change the root cause of the issue.
People, will always be people.
However, in this case, regardless of intent - "extraction" is the correct term.