I know this is coming a bit late in the day; here's something that may change the debate.
The real inflation rate - the reward rate due to upvotes - is currently about 23%! Not the blockchain's approx 8.5%, but almost 3 times larger. The author-rewards rate is about 17% of SP.
The reason these numbers are so high is because not all STEEM is vested and upvoting.
So, instead of adding 1% to the 8.5%, why not take 1% from the existing creation rate? That is, from what I understand, what is currently on the table. This 1% amounts to just under 12% of the STEEM being created through inflation. So within a few days the reward pool will shrink by the same amount. That means the current 23% reward rate would drop to about 20%, with author-rewards going from 17% to about 15% - still double the creation rate.
You can play with the numbers, having either a flat rate across each earning category or weighted in different ways. (Late here and I don't wish to write a whole essay - though can do upon request tomorrow.)