Not true.  Not good and not true. 

A system as big as Mastercoin is pretty hard to build well.  It's going to take tons more money than we have in the bank today to perfect everything.  There will be a 'B'-round of financing.  Oh, I know JR doesn't want to - but it will be very good for everyone when it comes time to raise that second round and press on with development vigorously.  This is going to take some serious coin. 

Probably, everyone will be asked to kick in a percentage of their holding in new cash.  Then, nobody gets diluted.  If you decide not to up your investment - then you get pushed down with a dilution.  This could be done without creating more coins.  But, it will probably be easier to just issue some new coins.  That is not a nightmare.  It is good for everyone involved to bring in additional development funds.  No big deal.  Let bitcoin keep their weird idealisms regarding a deflationary currency.  We can and should have an administration who can apply reason and method to fund the next stage.