I think you're right with the two points you make with regards to living off of your Steemit earnings, particularly point No. 2. No. 1 is important for long term earnings, meaning creating a sustainable longevity on the platform, but using those earnings to live on will always be driven by what your expenses are.

I've ran through the scenario of whether or not I could conceivably live off Steemit earnings, and the answer is, yes, but not for a long while. The minimum weekly amount I would need to convert to fiat (unless STEEM is readily acceptable by the time I can do this) is $800 a week.

That's based on some inflation and no new ongoing expenses. Otherwise, the minimum will be higher.

But I also want to be earning SP so I can increase my ability to earn, so it's not like I'm going to get to a certain point and start cashing out. I have to build beyond what I need, probably triple it, and then continue to add to that SP as I go, otherwise, I deplete SP too quickly and my earnings drop.

So, anyone hoping to live off of their Steemit earnings needs to take in account those factors and considerations.