That is correct and I agree with everything you say. I did not mean to imply that it is an easy problem to solve.

With sites like busy.org and steemit.com being the main ones (at least as of now) it would be up to them to decide on whether they want to include advertisements, and whether the revenue would be returned back to SP holders (in part or in full). @ned's proposal (which would be for Steemit.com) was that the revenue would be returned to SP holders.

As far as competition - sites would need to provide added value that could not be easily replicated in clones. That in of itself is a difficult challenge, especially when dealing with open source. It is not impossible though.

We need lots of engaged users first though, and in order to attract/retain more users there are still a lot of missing ingredients. My hope/belief is that we will get there. Not sure how quickly though..