You make a really great point here about the misconceptions some folks have. There is no privacy on Steem! None! There is actually no privacy on Facebook, either, from an information-theoretic standpoint. Unfortunately, people like to deal in terms of trust.

Sure, if you trust Facebook to delete what you ask them to, or if you trust that they won't risk being fined/jailed for non-compliance with regulations... Steem's mechanisms become a bit scary to you. I never trusted any of these entities in the first place (and for good reason, we've since found out), so Steem doesn't bother me one bit.

The most annoying thing about it for me is that there are a few embarrassing typos I've made that I can't actually erase... which leads me to my next point. Just a small correction on one of your points:

Your stupidity is immortalized (after 7 days) on the Steem blockchain.

Your stupidity is actually set in stone the second you sign and broadcast the transaction. Even an edit won't delete the prior content of your post from the blockchain.

Editing is still useful for some good-faith damage control (nobody is going to care if you made a typo), but I myself have looked into the blockchain data numerous times to find out what someone said before they "deleted" their post.