High inflation is a huge challenge for Steem and it is very possible that paying out less % inflation (via burning) would increase the price of Steem and therefore ultimately increase the amount (in purchasing power terms) that can be sustainably paid out without continuing to drive the price of STEEM down by 99% and wrecking everything.

Of course that may not be true, but it is a reasonable debate and matter for voting.

Also, see my other replies to @whatsup and @abh12345