My thoughts are somewhat in between the options you mentioned...
I'd like to see all the SBDs currently in the SPS used to buy and burn STEEM. The increased price of STEEM would attract new users as well as new eyeballs. Then... I'd like the SPS to be re-worked in a fashion similar to what you suggest with many checks and balances.
Basically, I like your ideas, but I don't like it starting out with so much money.. I'd prefer that money be funneled back into STEEM itself and help all current holders of steem in a very direct. Then, going forward, we can build something that may foster more development going forward.
That's an interesting idea. I'd have to mull it over. I can see your point, but on the other hand we could look at it like seed funding for a startup company. I guess it all comes down to how capable the most influential SP holders would be for ensuring accountability.
Update: Forgot to mention, I had almost forgotten about this post, so thanks for bringing it back from the past!
Yea, I understand the seed funding idea, I am just pretty jaded when it comes to funding ideas and projects as the vast majority of them end up taking in way more value than they ever create. For that reason I'd rather that money be used to directly help all STEEM holders directly via the buying and burning of steem, then moving forward we can setup something that "might" (with a large emphasis on might) end up creating some value for the ecosystem if setup right. Like I said I'd rather take the guarantee injection of several million dollars into the ecosystem than spend it on something that most likely won't generate more value than it takes in... This is sort of a 50/50 path. We get the direct benefit right away and setup something that has the best chance of creating value longer term as well.