So this will print more HBDs that will end up in the market, which will make it more difficult to stabilize when the price is below $1, no?

No, the amount of HBD on the market doesn't impact the price of HBD too much as long as the haircut doesn't threaten the convertable value of the HBD.

Ultimately, it's a question of which one we want to focus on, HIVE or HBD.

No, I completely disagree with this idea. IMO increasing the utility of HBD increases the utility of Hive as well. And we've already seen dramatic benefits to Hive price from a more stable HBD.