It is possible for Dream to outcompete Steem, but it will take much more than forking out some founder coins to do that. It would require better game theory, better product, marketing, exchanges, etc etc.
If Dream is only about removing founder reward, then I think its not only completely pointless (see other shitcoins that did that and how it worked for them), but also harmful for Steem itself, as such move would create community divisions, breed trolls and take advantage of newbies.
I'm still not being clear. This post has nothing to do with Steem specifically. My comment about Dream meant just go ahead and replace Steem with Dream in the post; it changes nothing. I did not mean to imply that Dream is a Steem fork. I probably should never have used the name "Steem" in the original post as it confuses things.
On the matter of outcompeting and generally competing, I agree with you of course. You've been around Steem for a long time, as have I. I'm sure we are both well aware of many of the obvious areas needing improvement.