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RE: WHY WE NEED TO BE HONEST ABOUT WHAT STEEMIT IS!
Good points on Steemit itself. However, STEEM seems that it could be a Facebook competitor if the right front-end was built. The great thing to me about STEEM is that it is a blockchain and can be used with any front-end. A forum interface has been built with chainBB and busy.org is closer to a Facebook type interface. There is work on a Twitter like platform too. All consuming the same blockchain.
I honestly think it will happen but currently it does not have that feel or experience.
It's not just UX or UI though. The community has been built up by rewarding long form content over short form. With a Facebook lookalike the community will have to accept more selfies and naked links to outside content. Im not sure thats what people really want. In reality steemit will cease to be relevant really quickly if it tries to be a close facsimile to Facebook. Besides if it becomes a real competitor Facebook will simply copy 'the best bits' of steemit to kill it off. Look what its doing with instagram against snapchat.