Really good post and in my opinion an extremely important topic for the platform. Kudos to you for showing some leadership on the issue.
I think you will get shouted at because crashing the SBD back to $1 is going to be very unpopular. It is why I have suggested the BIAS setting is a way to apply market pressure without crashing the price (and without requiring a hard-fork).
Another option is to re-peg the SBD at a less drastic rate. For instance, if the SBD is at $6 you could re-peg it at say 1 SBD = $5 USD worth of STEEM while implementing the reverse conversion of STEEM back to SBD. This will make the crash less severe and protect some of the SBD holders and authors who would attack the proposal.
This does open a whole new set of challenges regarding the post reward calculations but you could leave the SBD rewards as they are and authors would be happy. At the end of the day they are the main ones driving value on the platform. In many ways it underpins both the SBD holders AND the authors while also giving us the stable peg we want and need for commerce. It's a compromise solution.
The idea of phasing in the reverse conversion (say starting at $5 and then gradually steeping down to $1) is a reasonable one but adds more complexity to the code that would only ever be used once. That is likely not a good tradeoff. But maybe it is worthwhile if it is the only way to help bring consensus to the idea. Thanks for the suggestion.
My personal preference FWIW is to simply wait until SBD comes down closer to $1, which will probably happen in due course, and then implement the improved pegging feature. This comes at a cost in that stable coins are a rapidly growing market and if we don't fix ours soon we may miss out on a big opportunity. At a minimum I think we ought to prepare by getting the code ready and them perhaps not actually deploy it until the SBD price is already closer to $1 on its own.
I should add I also think the curation rewards need an SBD component as currently with an elevated SBD price the curation reward being SP only is a distinct dis-incentive.