This response starts with the correct assumption that decentralization alone can't have a solution to the Byzantine Generals Problem (the failure of proof of stake), and then proceeds to make little sense on the unrelated problem of scaling the blocksize in POW coins. The latter problem Monero solves. Keep in mind that an equilibrium between fees per block, base reward and blocksize without a collapse to zero or "infinite" fees, the problem Monero solves, does not by itself speak to the miner centralization issue.
Whether proof of work introduces enough external entropy into the system to solve Byzantine Generals Problem is far from clear because there are a host of centralizing and de-centralizing factors interacting with each other the majority of which have not been taken into consideration in the previous discussion.
Your conceptualization is so egregiously incorrect on so many levels, I am mentally challenged as to how I can respond to both illuminate and untangle all your errors. When someone as you have done here twists their thinking into such a convoluted state of wrong conceptualization on top of wrong conceptualization, it becomes arduous to even continue the discussion. Sorry if that sounds like an ad hominem response, but I am really flabberghast+exasperated that you are apparently incapable of comprehending what I have tried to explain (again presuming you are supposed to be an expert on this issue given you display that you are intimately involved with Monero's penalty algorithm). I guess I just assume that extremely intelligent people are capable of comprehending, but apparently this is not true and I need to work harder to elucidate my point. But I am also trying to discipline myself to stop posting in this forum, so I can't continue to untangle the twisted thoughts of others. This has to stop at some point very soon.
Let me reflect for a while on how I can elucidate this issue to you.