The thing that perplexes me about Mastercoin....
You are certainly perplexed.
its price is so high relative to other altcoins,
this is the reason you are perplexed.
Doesn't seem to have much room to grow, unless people expect it to become worth 1 BTC or above.
Mastercoin
IS bitcoin - but on steroids. It is
not an alternative coin.
Is the intention that Mastercoin will become the new standard version of Bitcoin
No. That implies that Mastercoin should 'replace' bitcoin. Mastercoin does not. Mastercoin simply
operates in conjunction with bitcion. It doesn't replace or 'better' bitcoin at all. Bitcoin stands alone. Mastercoin helps it be better.
1 MSC and 1 BTC be expected to equalize when that happens?
Probably not. MSC will be a better more versatile vehicle than bitcoin which is
merely a currency with an impenetrable ledger. Mastercoin is
many things - with the same impenetrable ledger. Many things includes: securities; bets; contracts; smart properties; and a bunch of stuff we haven't fully put forth yet.
but the Mastercoin concept seems a lot more complex than altcoins
I don't think it is 'more complex' - but it is much more interesting, powerful and versatile. Probably a many other things too.
For these reasons, among others, look for MSC to be greater than BTC in value in about 3 months.