Your argument is misleading, i.e. one satoshi could be colored. Furthermore, it is unlikely that a competitor in the "advanced feature race" which fails to take advantage of the enormous security and value of the bitocin blockchain will be successful. Might discussion in this thread be centered on MasterCoin rather than advertising/discussing competitors? In that spirit, I have some questions regarding issuance of new currencies and datastreams in the mastercoin protocol.

What possibilities are there to automate the stability concept of Escrow-Backed User Currencies? (If unfamiliar, see: https://github.com/mastercoin-MSC/spec)

I am wondering what mastercoin protocol features exist or could exist for a decentralized system to both issue and manage a user currency on the mastercoin protocol. In this way users could trust the design of a "user issued" currency on the mastercoin protocol rather than an individual. Specifically, how might a network of users or an instrument such as a separate blockchain possess the capacity to distribute or transact a mastercoin protocol user issued currency? I can think of many ways to create an automated, redundant system which could do this but all of them suffer significant counterparty risk, i.e., they require trust in the creator of the distribution system rather than trust in the distribution system itself. Is there some possibility to decentrally sign mastercoin protocol data streams or transactions?