Let's not forget that Steemit Inc can vet all those ads. They can also give free or discounted slots for other projects (Tron, Byteball etc.) for collaboration efforts. Devs were going for the right thing with SMTs. But they have no business sense.
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In this new market, any decision can backfire later on, so I get that they try to minimize risk by making fewer big choices, especially of who to cooperate with. The best business decision now is not automatically the best decision longterm.
I don't think they have the capacity to think through what pros and cons different projects might have. They do what they do best, coding.