Dan's point is that under the current system it's easier to abuse the system, i.e. make 10 posts daily with a bot and upvote them than it is to police those kind of behaviors and thus those behaviors will become the norm and will permeate Steem and those who engage in it will become the most prosperous Steemians which will leave everyone in need to engage in those behaviors.

I might have misunderstood Dan's point and I'm not saying his point or solution are correct but Steem's incentives are fundamental to Steem's success and can't be relegated to an afterthought.

I've just written some more thoughts on the subject here.