Nice graphs and analysis and I upvoted even though I almost completely disagree with your conclusion.

When Dan proposed a witness feed discount, SBD was at about 0.80 USD (sometimes even below that). Shortly after he proposed a 10% discount and most witnesses implemented it, SBD rose to about 0.90 USD. It has slowly risen over the following weeks to about 0.93 or maybe 0.94 USD (some range around that at least). This included some, but not all, witnesses implementing even higher discounts of 12-14% (currently the aggregate discount is around 9-10%).

Based on these observations I don't find a 5-7% discount likely to produce the desired results of a both a functioning USD peg and a transitioning to a lower debt load in any reasonable period of time. However, I can't state this as an absolute fact, since it is ultimately up to the market.