It doesn't cost $500-$1000/year to run a witness. You can run one at home on a laptop for next to nothing (as long as it has enough RAM, and as long as your ISP connection has at least decent reliability and performance and allows sufficient bandwidth).

Agree that you should not spend $500-1000/year if you aren't going to be highly ranked. Only higher ranked witnesses need top tier hosting and equipment.

Agree that Steem does not need more witnesses.

Disagree that someone who wants to run a witness shouldn't do so, as long as costs are controlled.