You got it spot on, however what alternative is there for the small fish to be able to compete/get their "fair" share? I've been thinking about it for a while now and haven't figured out any other alternative. It's easy to point out flaws in the distribution system, it is much harder to fix them.
Network is secured by Proof-of-Stake but repartition of coins by Proof-of-Work!
That's a new paradigm in the altcoin/crypto universe.
So the PoW is just for coin distribution?
Yes.
Kinda useless then. The flaw of PoW (and PoS for that matter) is the flaw of capitalism: loads of money makes more money. But it has one unique quality: securing a decentralized blockchain.
This leaves the good part out and you're only left with a competitive game, in which the small fries can only squirm.
Can someone counter this argument? I don't see a need for artificial coin distribution, but maybe there is.