In fact, I think it's overwhelming positive for LEO that the stake is closely held. It will allow for higher prices because it's held by those that believe strongly in the project and those higher prices are going to ultimately attract a lot more users
I would have thought you'd been around long enough to understand the risks. Conditions change, beliefs change, behaviors change. Relying and trusting on the benevolence of people when money is involved will often lead to bad outcomes and once the positions are set, it is very hard to come back from it, as we have seen before, quite recently.
There is a trade-off with just about all things in life, risk vs reward. In this instance, I think the potential benefit outweighs the potential risk.