Scarcity isn't a problem, it is a driver of value. But if there is narrow distribution and scarcity, the price can be high, but only a handful benefit. I think that leads to social problems in the community, much like it does in real life.

Yes, distribution happens over time, but it doesn't have to be like it was on Steem. There are millions of people holding Bitcoin, it is a little different. Plus, 20% of the tokens are locked up for life, through lost keys. That could happen on Leo too of course.

I didn't mention the pools as I don't know enough about it, which you will find from some of the other comments here. Also, the pools are a bit different to use, so cater for a narrower audience perhaps.