Thanks for the discussion.
It sounds like an automated price bias would be what you're in favor of. If the price ever drops below $1, then a bias gets implemented right away to always keep it at $1. That might be interesting. Ultimately, I have doubts about the current structure of the SBD ever working because unlike bitUSD, there isn't a conversion mechanism both directions which enforces the price peg. The 3.5 day lag time may also be too long to quickly adjust the market (it used to be 7 days). Maybe more liquidity would make this a non-issue as more people would use the conversion option, even without a price feed bias.
It doesn't have to be perfect, but it can get progressively better. Automation will be necessary eventually, but for now a human making a quick review and judgment every 2-3 days and applying the configuration change seems reasonable to me.
I argued in posts over the last month when the peg was well broken to the upside, that an upwards broken peg isn't a huge concern. The network as a whole still gets large benefits from that, as long as people are aware that there's no promise to keep the price that high. It undermines the ability to use the token for ordinary commerce, but we gain other benefits instead. I am in favor of allowing SBD to diminish in importance (such as by allowing rewards to be paid optionally in Steem), as long as the SBD contract itself still remains available.