Yeah, I understand what you mean. Sometimes I think about powering down and being done with it like so many other people have done since the price crashed. My main problem with that is that steemit is my main outlet for writing about stuff now, so I don't really want to leave. If I look at it as a blogging platform that happens to have the benefit of small rewards, that makes it easier for me to stay on steemit. I also like supporting the people who's content I find interesting. I really don't expect to get support from any of the bigger accounts, I don't write about the right stuff to get their attention. I've been on steemit for a year and a half now, so I've seen the way most of it goes. The content creation just doesn't seem to be the part that gets much rewards.
In the past 6 months or so, we've lost a lot of really creative people from this platform. I'm guessing that they just didn't think it was worth their efforts to put their creative work on the blockchain. I can't really fault them for thinking that way.
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Exactly how I treat this. A blogging platform that happens to have money attached to it. I find people I like here and continue to interact with them, and I'm fine. The fact of the matter is, there are still a ton of things being rewarded that would not have been rewarded in any other system, good and bad together.
Now about where the money goes, I'm perfectly happy at a default if we can spread STEEM to as many participants as possible to bootstrap the eventual economy. I venture a guess that content will not be a major component in the grand scheme of things but it will have supported communities that do reward that stuff. And that will just be whichever way the stakeholders are making use of it. Yes it really sucks that right now they passively funnel into their own pockets but that's not everyone at least. There are so many initiatives blooming where stake is allocated to things that increase the value of steem (see: dapps curation, at least some of it anyway). In this bootstrap phase, I'm happy to identify people that are active and helping growth and setting up auto votes to spread it around.
But anyway, I didn't answer your initial question. No, I do not like graveyard passive post farming. But that includes long form posts too, if you have someone that dumps long beautiful posts and never responds to comments. And there are short posts that generate a ton of back and forth buzz that I would approve of. So in some sense, it is why you hear people say content is not so relevant.