Steem is the platform. Steemit is a website. You can use Steem platform via busy.org, chainBB, or eSteem app. That's why I just call it Steem.
True, platform depends on users. But look around online, plenty of people using other social media platforms for 0 rewards. As people get introduced to steem, joining is no brainer.
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True. Other social sites people use for free, but people are not likely to do that here because the precedent has already been set to expect to be paid. And the problem comes in when people see others making so much money and then look at their wallets and see the wealth and then they get angry and discouraged when they're contributing just as much or more but aren't making anything much.
It is my guess that people join Steemit the website for the possibility of getting Steem first and an outlet for their blogging/socializing second.
But, I do believe it's all going to work out. My prediction is that future hardforks will fix some things. I think they are just wanting to get as many people on the site as possible right now, which is a good thing.