I don't personally believe any project was overfunded, they were receiving the HBD that they asked for. HBD is meant to be at least $1 by network rules right now, but those taking funding from the DHF also take the downside, below-$1 risk of it too. Anyway, I didn't unvote anything but the return proposal lately. I think the DHF can afford the few HBD for those <10 HBD/day projects that pay for hosting costs, at the very least, and I hope to see them get voted back in even in a frenzied HBD market.
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They can still pay hosting costs getting overvalued HBD for one month (which would be more than needed for hosting, unless hosting is priced in HBD, which I doubt) and then getting cut off for a while. That said, I mostly agree with you about the small projects. Not worth the trouble. I haven't unvoted anything.