This is not true.

We disagree on this. If it weren't true then there would be much less Steem sitting on exchanges because authors would be buying in creating a demand. Looking not only at current users, but the many who came and left, I feel confident in my belief most never bought one Steem and cashed out whatever they received. I imagine how different things could have been here if the majority that came would have bought in. Looking at some of the more popular bloggers here, several have large stakes (not whale size but decent) and some of them mention it was all earned, none bought. How different the picture would look here if the masses had decided to buy their way into a middle class here.

I fully understand how the flag impacts the reward pool, and how those with the most stake benefit the most from the rewards being returned to that pool. While I would never assert that malicious destruction of lower staked accounts is beneficial in many cases to the growth of the system here, I am not so quick to let the common users off the hook. I interacted with many here that have been of the mindset they would vote others at dust level despite not having to, under the assumption others should pay for dust sweepers if they wanted anything from the vote.

I agree with your assessment this fork will shake up the community, and that many will probably leave. Some will leave that are important to me, and that sucks. But I imagine those who come to milk will outnumber them.

Steem is having a crises in identity. The majority of users here came with no intent on investing in the project, only extracting from it. That is evident by how few are even minnows, how many aren't even close to it. It's easy to point at whales and blame them, but if the masses had come and bought into the system they wouldn't be searching for a community that wants to support the project enough to keep it from falling. They would already be here and it would be reflected in market ranking and price.

My cynicism in the project grew many months ago, and it was the gib me mines now mentality of the masses that hammered it home for me the current structure was unsustainable.