2. Mining alg cracked, asic appears, admins print huge amount of money. There will be some reasonable daily limit of mining withdraw so we'll be able to catch emergency cases, algs will be adjusted to existent hardware. We'll not print much because it's a long term story for us, nobody will just throw out the reputation
Basically, you are admitting that you can inject as much money into the system as you see appropriate (with all ensuing consequences), essentially bypassing the proof-of-work protocol, provided it is in fact implemented (which I doubt). This doesn't bode well...
But everyone is free in drawing their own conclusions, of course