I agree. I do not believe the downvote button is a good idea. That said, there is a legitimate reason people want it to exist. Facebook is centralized, at any time they can remove a person's content, but on a decentralized protocol like Steem there is absolutely no stopping people without something like a downvote button.
The issue with the downvote button is not that it exists, but that it can be used unfairly and unjustly. I also agree with you that it makes people feel unhappy and can deter people from continuing to use Steem. Primarily though, my concern is that downvotes are a matter of whim and are used for whatever one feels like using it for. This can cause it to create narrow-mindedness as one community of ideals can be stomped on by a bigger and wealther community.