I think that you've made a valid point with the reduction of inflation. 1% appears to be quite extreme but 2% or thereabouts will not be a bad idea. The distribution of the rewards between DAO, witnesses, and the community is what I do not agree with. More rewards should go to the community.
After cutting inflation, we also have to reduce the power down window like Steem have done while making HP more attractive. This will go a long way in positively impacting the price of Hive.