You make a decent argument that the excess supply is unnecessary. However, I don't see an argument as to why it is a problem.
You imply that the price would be higher if the supply is reduced. I simply don't see it. I'd love to see the price at $500+, but I honestly don't think it would be if supply is reduced. With the price at $450-500 that's a market cap of $900M-$1B. Do you really think reducing the supply would increase the market cap by more than a few percent?
Reducing the supply from 100 mil to just 10 mil (for example) has the potential to increase the price multiple fold without any negative impact to Veritaseum's bottom line and mode of operation. Reducing the excessive supply is desirable. That doesn't mean the increase will manifest right away, but it will manifest gradually into the future along with market adoption of the platform.