I agree. We had different mechanisms in mind. I was thinking of what you call "internal conversion." What you meant I call "trading on the internal market."

The published price (which is derived from the witness price feeds) has nothing to do with the market price in the internal or centralized markets for Steem or Steem Dollars. The price feed is used when creating rewards and allowing on-chain conversion by destroying dollars and returning some amount or zero Steem.

The market price can be really different from the conversion price. Right now, any Steem Dollars that was set for conversion will be destroyed without reward.