What happens to the content is that hopefully some of it gets rewarded instead of having much of the reward pool milked out by stakeholders paying themselves, effectively draining rewards away from all content.

Whatever else is going on with other platforms is interesting and worth paying attention to, but doesn't really change much about the mechanisms that do or don't work on Steem. We can't simply wish for value adding content to be rewarded, we need a mechanism that actually does that, which is what this is attempting to do.

It isn't guaranteed to work it is the most credible effort to date in my opinion.