I'm glad someone is pointing this out. The whitepaper is essentially saying that in this regime the market is willing to pay a lot more for this debt token, and there's not much you can do when there are too many crazy people.
And I don't think too many people realize that that's what this is (1 SBD is a gift card worth 1 USD worth of STEEM when redeeming through the STEEM blockchain). And we have a natural mechanism where the more successful STEEM is (by marketcap) the more SBD gets printed. Just be patient y'all....
The white paper also says this:
The white paper got this wrong. They did not think that an upper peg would be needed (other than perhaps very occasionally). They were also wrong that there isn't much you can do when there are too many crazy people, as shown by other pegged coins on the market that deal with this situation a lot better because they have mechanisms to increase supply. They still have pumps, but the pumps are short-lived and do not disrupt the token value for months as they do here.