I'm talking about DPOS and crypto in general.
Clearly not everything can happen on Steem specifically.
That would create the impossible contradictions that you've mentioned and a million more.
Centralized authoritarian control of a DPOS chain was the obvious biggest attack vector of the entire consensus algorithm. It was guaranteed to happen sooner or later. Looks like sooner.
So you think this is a bad thing for Hive?
I see it as the natural progression.