It's a tough one, for sure. From a value perspective, definitely, the more of a currency that is put onto the market, the lower the value of each individual unit. That's just simple economics.
I think, ultimately, Steem will succeed or fail based on the value that the ecosystem provides it's users, and I think this is irrespective of the value of steem itself. If the ecosystem provides what user's want (a social platform, games, etc), then it will probably succeed.
To be honest I still believe but I am discouraged by the value of my own account with all the time I put here.