Yup. The servers need to be scaled up, and the blockchain needs to be a little more decentralized. Everyone can build on STEEM (busy.org, utopian, etc.)... but I'm pretty sure that Steemit.com holds about 95%+ of all the traffic in the ecosystem as it is.
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Absolutely and imagine, when the first SMT-powered dApps that are built on top of Steem are introduced! I really hope that scalability will not be an issue that kills the blockchain... (P.S: I have now tried to send this comment 5 times and got an "Error: Invalid response id: undefined")
Nah, blockchain won't be killed...
...just a little sloooowwww maybe.
With a few errors, here and there.