I think the entry tax would be fine if the APR is very high as seen in some DeFi apps, but I am not sure it would be high enough on Hive toy not be painful. I agree that if there was a higher APR for buying, holding and participating, more people would be open to other fee structures - just got to get them in the door first :)
I think giving options for instant should come at a price that rewards holders as much as possible. The talk of burning/dao is fine, but I think keeping this simple and having a direct link between would see more community benefit for holders. DAO/burns benefit everyone, dumping only benefits the sellers. If the buyers have incentive to stake and hold, eventually the sellers have far less impact on price.
During extreme bull runs, even the mightiest of Hivers would be tempted to instantly cash out to catch a really big pump, with hopes of catching Hive cheaper. What usually happens is they sell too early and end up forming back in any way at a higher price. But some do pull the magical hat trick of buy low and sell high. I just feel everyone might be pleasantly surprised at how high the APY can get for Hiver power holders when lots of people are cashing out instantly, and all of that goes back to the hive power holders.