a lot of the dirty laundry is public
Yes, this is a huge factor, which is amplified by the fact that blogging doesn't offer a tangible ROI in and of itself. Perhaps, SMTs may give new STEEM to a stagnant economy.
Steemit will always be a pioneer. I think the 'pay to post' system is here to stay. That said, the riff-raff scam and bot infestation is a huge turnoff to anyone with serious wealth putting serious money in the pot.
Anyone who tracks the market, even a novice such as I, can see that we're currently playing with a helium balloon manipulated by a handful of people. Unlike, for example, Apple, there is no tangible asset associated with the Steem economy which can't be easily replicated.
Best regards.
Peace.