Distribution is already happening via upvoting from whales but the process occurs over a long period of time. A page rank type of voting scheme like dan propose could help at doing better curation ans therefore more distribution.
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Does steemit have the time to allow it to naturally distribute to a more sustainable distribution. What we have at the moment is putting some new users off. There will be other blockchain social media start ups coming through.
As well as that the distribution method is ripe for abuse at the moment. Via upvoting secondary accounts and accounts of friends, as a 'whales' vote can turn any post into a success (obviously you need good quality to be a big success).
So ultimately I agree distribution is happening, and I believe it needs to happen to not scare off the new users. I am just not sure it is happening quick enough