For sure the DHF should NOT be used to prop up failing ventures (like the banks were) but that didn’t appear to be what was proposed.

It's excatly that. The old management created a hole in their books, and they struggle to attract new users. Now they're asking for funds to resolve that situation.
Besides that, all they want to do with the money is some obscure marketing. I'm 90% sure that the issues the game faces go way beyond onboarding of new users. They didn't lose droves of old players (including me) due to onboarding issues. It's also not the cause for the value of their tokens tanking. Except if they're a pyramid scheme.