I can see you wrote this:
the rich get ALL of the Byteball practically and the poor get basically nothing even though they put in the same effort.
What the distribution of Byteball was? How the rich could get more coins?
To me yes. It is worse than a " fair ICO "
the rich take the bulk of the coins as usual but this time there is no need to pay like with an ICO. You just magically take all the coins just because you are BTC rich with no risk at all to your BTC stash.
Imagine all new alts distributed like this. Utterly unfair.
Having said that I do not at all consider IOTA a fair ICO so both need to be cloned and distributed in a more appropriate manner.