One of the reason why some people like staked STEEM (SP) is because they know when their account is compromised they won't lose all their crypto immediately so if you propose to implement it this way they won't agree to it.

The instant dumping is another issue, this change will lure people that just want to leech value from the network (existing or new users) because earning the "free money" requires absolutely zero commitment to the source of the "free money". "I don't think it would be all that bad" is not a good enough justification to just ignore the potential threat.

Yes, the proposed change as written on the original post is better off implemented as a completely separate Steem fork (like GOLOS or WS) or tribe. It just bears to much risk to implement it for Steem.