This is a good post and I only disagree on one thing.

You say that they provide no meaningful development, but I would say they provide very little development.

Yes, they are shit, but they still do some work.

Removing their stake would prevent them from working, which is bad for us. Why not instead go with this proposition from @jesta :

"Steemit Inc voluntarily giving all/majority of their tokens to an elected body which would, in return, fund Steemit Inc. This provides oversight, transparency, and accountability based on performance."

I think this would solve the problem, only reward them when they perform, and make them work harder.