How does this seem "fair" to anyone?
No it does not seem fair or reasonable to me. Given the circumstances, the intention behind these decisions/rules does not appear to be about creating a fair platform. Its appears to be more about creating a controlled environment that makes the distribution of Steem more difficult. The bulk of the reward pool being funneled to those who already hold the most Steem looks like self sabotage.
At a guess it may be seen as an incentive for people to invest.
RE: Interview with a Big-Fish