Plus if users leave, Incs new revenue model goes away, thus they will have to sell steem even faster to keep the lights on which will drive down prices even faster... a death spiral. Once they are all out of steem, how will it magically rise from the ashes?

There won't be any money for advertising or to pay developers to build on here...

Our only hope will be this SPS fund, which will be paying developers with very very cheap steem, which likely won't be anywhere near enough to attract any real talent... which means we likely won't get any cool stuff built on steem. Nothing that attracts a large audience anyways and warrants a higher steem price.

I am not seeing how any of this will be good or how it will recover to be honest?