In the grand scheme a peg is likely more beneficial as to the opportunities it will create for currency use.
Of course in the short-term there will be a little pain and impact users directly. Unfortunately not many people are willing to sacrifice for the greater good. In fact I have not seen that since my grandfather's generation.
SBD was designed to be a $1 peg, I will always look at it that way.
I agree with keeping the peg. It's what it is designed for, if not used for that then why have it? I have been designing and coding a point of sale system for brick and mortar merchants that would greatly benefit from a stable SBD (which I think steem would benefit from brick and mortar merchants using it) but I've put the project on hold until this is worked out..