That's a pretty good analysis, basically there are 21 times the amount of Steem tokens to Steem Dollars, so the idea is that you use as many Steem tokens as it takes to make up SMD 1.
So if Steem is worth fifty cents, it will take two to make a dollar and of course 25 cents will make 4.
As far as we're concerned we want Steem to be as close to a dollar as possible, though the financial technicalities escape me, I know that traders like stable currencies that they can make good long term profits on. So the more people who are aware of Steem, then the more traders there will be, which leads to better prices, which leads to joy and happiness for us Steemsters.
:-)
CG