I 100% agree that I don't agree people are "fake nice" here on steemit. We all want to prop each other up on this platform, unlike others where we want to bring people down so we rise. Reputation plays a big roll in curbing bad behavior, the creators of steemit really knew what they were doing!
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As much as the reputation algorithm could be and maybe should be improved. It's no doubt a net positive. Because it's almost as an indicator of social profit. That makes little sense unless you've dove into the psychology behind the importance of the number next to your handle.
But in truth, it's our equivalent indicator of Social Status. We want to nourish it, we want to protect it, hence we do our best to be our best with that goal in mind.
It's so complex, but then simple just because its not that unfamiliar to us socially.