You have hit the nail on the head. Steemit.com is one example of a STEEM website. Instead of investing in steemit.com; they want to make STEEM better so there can be 1000's of websites built using STEEM.
Chances of success on that path are very very low. At least 95% probability this strategic vision and goal will never be realized.
They are more than "swinging for the fences". They are trying to hit two out of the park home runs in a single at bat.
If they happen to make it, the sky is the limit for price of STEEM.
They are going down HUGE risk and HUGE reward path. Usually doesn't work out. Very infrequently it does.
I agree with you and yet... they currently have the one of the fastest, most used blockchains ever. They also have the only functioning social media website paying people for comments, posts, and upvotes via cryptocurrency. On top of that, new apps like DTube, DLive, DSound, ChainBB, Busy, Utopia.io, and more are being being built and maintained right now. The momentum and progress is quite impressive when we step back and look at it all.
I'm willing to hang on for the ride. Worst case scenario, they make a huge dent in the space and other competitors pick up where they left off. Either way, I think we'll all benefit by more decentralized tools improving the world.
I'll potentially be back after I watch STEEM price bottom in 6 months below $0.50, and see how the SMT vision is progressing.
There will be lots of time and opportunity to re-invest in STEEM in 2018, if any part or all of the SMT vision turns out to be real.