We also believe that whales (accounts with over $500K Steem Power) have more to lose and are easier to police than the multitude of smaller accounts.
My impression is that whale activity is harder to counter if it moves towards negative behavior.
Or am I reading this the wrong way?
Well, its harder to counter yes, but its also worth less. As the rewards go up, the post still gets more rewards, but in general the payout moves more slowly in either direction.