The low token velocity caused by steem being vested for at least 13 weeks at a time definitely helps support coin price. It slows down the rate of people earning it selling it. I think we've seen a lot of downward price pressure caused by Steemit Inc. dumping huge amounts every month to cover operating expenses, so that may be hiding how well that function would otherwise work. It's possible that there is no amount of "slowing" the pace of sales that can overcome the downward price pressure of people supporting themselves by selling earned coin (whether earned as a witness or content creator/curator). I hope otherwise, of course!
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Hi you beautiful soul you! - I share your hope that the selling off bit is just a passing painful cleansing phase. I suspect there is still enough room for growth in this community to have STEEM gaining value just on that basis, once recovery from the extraction phase kicks in. After that I guess the fate of Steemit might depend on a balance between loyalty here and attraction to competitive platforms pre-designed to function more favorably for serious bloggers...lets hope!