The lenders of your scenario are charging too high an interest rate and are bleeding the community dry

I agree with your assertion that the interest rate is too high and I've been continually active in trying to convince other witnesses to lower it (my current vote for the rate is 6% and I intend to go lower still). However, as with most of these SBD arguments your statements are incredibly hyperbolic. The total amount of SBD outstanding right now is about 1.2 million. 8% of that (the current APR) is about 100K/year. That's 0.3% of STEEM's market cap. That is the cost of the interest. This is hardly bleeding anyone dry now, nor will it ever.

The same applies to all of these alarmist arguments about SBD in terms of allegedly excessive selling pressure from conversions, the supposedly enormous cost of feed discounts which are sometimes used to support SBD value and incentivize conversions, etc. It is a story people want to hear when the price is falling because it feels good to have something on which to attach the blame, but when you work out the numbers it ends up being very much like the above, and it doesn't hold water.