Really great write up.
I hadn't really considered the issue before and though there is the problem of a pile on effect, I also think the idea of "Wait, you can get paid just for liking things?" is a really cool idea... but as you said, it's not a reality for minnows and only really works for those with high Steem Power.
I like the idea of the curation rewards, but I do see what you mean in terms of the incentives they create and how that might skew things negatively.
It's definitely one of those things where I could see myself leaning either way. It's obviously a complicated problem since it is ultimately a question of human psychology. The only thing I'm sure of is that there are pros AND cons. :p