I would prefer a blockchain level version that doesn't liquify the rewards.
Me too and suggested such well over two years ago. This is the first iteration of this and I am pretty sure there will be multiple options for what could be done - for example and even now, not all of it gets liquified. For example, if I want 20 percent of my rewards to go to curators, I will set a 20% beneficiary to reward.app and then send the memo for 100% of it to be distributed. That way the remaining 80% (of the author 50) would be split as normal - HBD/HP or 100% HP. This could also be tweaked in many ways and options.
I actually didn't think of this. It makes sense. The thing is, I think 50% is an alright ratio. However, if the price of Hive goes up a lot maybe 80% will be in order.