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RE: Mutual leverage between Steem and exchanges; we can be destroyed, or we can use it
You raise a good point. There's little incentive for these exchanges to work with the witnesses, but we really should be building up the exchanges that have the community's interests in mind.
Indeed. However, these exchanges who powered up are now a thorn in our side. They have millions trapped and, trapped between a sword and a hard place, they'll take any offer, whether it comes from Justin or our witnesses. We're better off not letting them choose wrong.
True. There really is no right answer here. You're right that diplomacy is probably the best course of action, though. An ally is worth far more than an enemy...