Steemit has the potential to become something really great. But I'm not writing off BTC that easily.

I totally disagree with the 7th point you're trying to make. Every currency, not only cryptocurrency can and will be used for illegal activities. The criminals are using BTC right now because it's worth so much and every other currency is tied to it on the exchanges. Also there is a widespread adoption of it.

The moment a different currency takes over from BTC (which I don't see happening soon) criminals will switch to that currency instead. Criminal association hasn't happened to steemit yet as far as I know but that doesn't prevent it from happening in the future. What will the judgement be at that point? We will have to see.