Any peg costs money. The cost = exactly that of a Long Straddle (buy one call at the money + buy one put at the money). Since STEEM is extremely volatile relative to most securities... a STEEM peg should be very expensive to maintain.
By employing unusual back-of-the-envelope methods to maintain a peg, you get the wild $0.80 to $1.40 range that we've seen in the last 2 months.
Actually it is extremely cheap to maintain A peg. As cheap as transaction cost on the existing exchanges plus 7 day of Steem interest. Add to that that there is no logical reason for the 7 day wait period , 1 day will do just fine.
{hint}: You do not need no Straddle to hedge a now long [after the conversion request] Steem position... all you need is :)
The community/devs need to find a way to generate a stable external demand for STEEM. This could fund the gap. Much hated advertising could do the job but no doubt all the brains here can find a more elegant solution. Meanwhile it is better to save the calf while we ponder over this...