So, SBD distracts traders from trading STEEM
Honestly that makes no sense.
The two have very different properties and appeal to different markets. This is a bit like saying carrying toothbrushes in your store distracts people from buying sunscreen. They're hardly related at all.
Actually you seem to suggest this in the rest of your comment, so mostly I guess I'm not getting your core message.
EDIT: I see now you were quoting from @timcliff. I don't think what he wrote was equivalent at all to how you paraphrased it. You are describing two different effects.
Unfortunately, witnesses didn't use the tools at hand
There is a learning process here. We're all approaching this for the first time. In my top level comment I've noted that the issue with not using the tools may have started earlier, when the SBD supply was allowed to collapse to unhealthy levels rather than supporting it with a bit of interest. That by its nature (small supply, slow print rate) facilitates pumps; once the pump happens it is too late to go back and "undestroy" the supply. I agree the system is still deficient without reverse conversion or something like it though. (Which implies we ought to be looking at introducing a bit of interest soon.)
Maybe I didn't clarify what I meant with "SBD distracts traders from trading STEEM". It's because of the liquidity of rewards paid in SBD. Users could exchange it readily instead of having to wait for power downs. When the pump was happening lots of users were cashing out their SBD to pay their bills, instead of buying STEEM. I know that because many of them have msg'd me complaining how things are dire for them nowadays since SBD is back to ~$1.
I'm reasonably certain that a lot of people cash out whatever they receive, be it SBD or STEEM. If they are writing you about their lives being dire then clearly they are using rewards as a form of income to support their living expenses (which implies "cashing out").
Indeed, Steemit has become a source of income for people in Africa, Venezuela and other economically stricken countries. No wonder we see a lot of undesirable methods (spam, scams) probably driven by exasperation to earn a buck 😥