NuBits didn't have another coin to shit on.
That's not correct. NuBits has NuShares which is the staking token and much of the backing for NuBits, much like STEEM/SP (though there are also important differences).
[printing SBD] just results in downwards pressure on STEEM
If the alternative were printing nothing, then I would agree. But it is not, so I don't. The alternative is printing STEEM to pay rewards. Instead of some of the SBD being used to buy STEEM and power up (which channels the overvaluation of SBD into the STEEM price through added buying power), some of the printed STEEM is sold, resulting in downward pressure on the STEEM price.
Not printing SBD (and instead printing STEEM) when SBD is overvalued is pretty clearly a negative for STEEM. More selling of STEEM, less buying of STEEM, less/no 'bonus' buying power for STEEM due to the SBD overvaluation. There is no advantage to it, except to SBD speculators. Steem itself pays the price to enrich them. That's a foolish course of action for Steem stakeholders.
I see, I didn't look into nubits too much, just thought their dumb bot attempted to buy things, and I assumed it was with more nubits, which just seemed idiotic. That sounds about as dumb as I first assumed though.
I mean, people are going to prefer whatever benefits them, and I don't have a large stake in steem so...