You are under the assumption that the stakeholders and witnesses are better at directing it at places that add value. Based on the distribution and the last 3 years, I disagree.

My view is that the mechanism which has been used for that for the last 3 years has been severely flawed and these new mechanisms are much better, especially the SPS mechanism which apparently (I say because I have no personal experience but I believe those who claim it) has a track record of working well on Bitshares.

You and I both remember the original distribution. Any changes in that are a result of large stakeholder selling and small accounts buying or holding.

IMO with the exception of Steemit nearly all large stakeholders selling from the original distribution has long since occurred. What is left of the original distribution, people have mostly decided to keep long term (there may always be exceptions and people may always change their minds, but it isn't a constant flow of selling). And remember, in the original distribution Steemit had 80% and everyone else shared 20%.

But numerically the inflation paid out to content rewards matters a lot. It is more than the rate at which Steemit is selling, most probably higher than the net rate at which all whales, Steemit included, are selling

To be clear, this does not mean content rewards going to minnows. Most of it goes out at the top. But we also can't micromanage where it goes. Maybe with better mechanisms we can have some chance of managing it at effectively all.