3. PoW is still owned and operated by people, fallible and corruptible.
Yes, but PoW doesn't allow to concentrate majority of voters in federal reserve, Washington DC. Because Washington and USA at all - doesn't produce enough electricity to gain majority of network power.
Your PoW (Proof of Witness hehe) allows it without any significant expenses for Big Brother. As he easily manages thousands of IRL puppets. There will be no problem to create and inject thousands virtual "good guys" into community. Photos, IDs, facebook pages - not a problem. Even creation of real life person not a problem.
Did you even read the whitepaper on how witnesses work? Of course the gov't can do what you say. They can also produce a BTC mining Op that could coordinate a 51% attack. Not enough power, lol. Eff power. You don't think that there's already large financial backers behind some of the bigger BTC mining operations? You don't believe that the US gov't may be one of them? You don't need power when you have unlimited money. Why are you so concerned about them attacking an unlaunched & unproven coin, one of many, when they clearly have the money/power to attack the mother of all cryptos, BTC??
Hell, between the Silk Road & Ulbricht confiscations they could've already had a huge market share. Not to say they didn't reinvest that money under anonymous terms but I still am having trouble understanding your paranoia. Nothing personal, just trying to understand your thinking.