The problem is not the reward-curve but the lack of any feedback mechanisms in the code so that the ecosystem equilibrium is commensurate with the stated aims.
The Vitalik quote is correct - it's all game theory. Having said that, I don't yet see a blockchain ecosystem that has got their algorithms right yet; ETH's gas fees are prohibitively high for small "social" transactions.
I am looking to see how flexible SMTs can truly be so that experiments can be conducted on different algorithms. We shall see...
It will be interesting to see what happens after HF20 and SMTs. I hope all the promises and hopes come to fruition for the sake of the 1090SP I have staked !!