I prefer a combination of Burning and Airdrop to existing STEEM Power holders. Whatever Steem.Inc will decide at the end, the important thing is that they do something soon.
More serious / professional investors joining the crypto space and the current STEEM distribution is surely a red flag for many and reason to park their money elsewhere instead.
I don't feel this will be done, but I feel you're right as far as distributing rewards to people who've taken a risk on the platform. Either reducing the supply or equally distributing to those vested means that everyone is rewarded. Burning the supply benefits those without SP too, while SP distribution rewards only those with SP.
Yes let's see what / if something will happen regarding the distribution. I am happy that many high reputable steemians voice this concern.