I mean it is that simple. It will be deliberately unfair in every possible way to ensure only the devs and handful of others can mine it. Then the profit goes to them and only them and the creators.
That is not the only possible outcome of Daniel Larimer's astute logic. That is one possible way to do it, which I agree is not going to result in a viable ecosystem.
Do you mean the profiting part?
I mean a lead developer(s) can use a variant of his strategy to attain some fair percentage of the tokens, say 1 - 5% as Satoshi is alleged to have done, and still not destroy the adoption of the currency.
If you were wise, you'd spend 4% of that 5% developing the ecosystem. And end up with a non-troubling 1% for your excellent and noble efforts. While also being compliant with the law.
I don't think it is necessary to have an instamine in order to achieve the apparently legal strategy Daniel Larimer explained.