Wants whales and early holders of large stake to sell so their large power hold over the entire chain as is eventually gone(75/25 rewards actually did that).

The only thing that it incentivized was self-votes and actually accelerated a lot of concentration of power for those who didn't sell. I guess short-term memories about Haejin and Traf is a thing.

I wont touch the other parts, just find it curious people want whales to be forever leaders

If you want to get rid of your share in governance, then feel free to do so. Don't tell other people that they should give up theirs because you can't help but throwing yours out for a mess of pottage.

People don't necessarily want them for leaders, but you certainly don't help your position by throwing away your power while they opt to not do so.

Optimal conditions for decentralized proof of stake:

Is when people prefer to hold than selling. Obviously, there's no incentive for the "average" Hiver to hold HP, thus they sell.

Bigger chains like ADA have over 70% of the circulating supply locked up in people's wallets whereas it's much less so on Hive. Ask yourself why.