That's not what I'm arguing here.

I'm pointing out that investors in the primary (mined) supply who pay 100% of the mining costs receive only half the proportional supply they do with other coins (100% mining reward ones). We therefore lose marketcap share to them.

Masternodes do not "bring coins into existence" as quizzie asserts in the sense of bearing the cost of their production. Miners do. But miners aren't the problem because they just pass the cost on to the market and difficulty adjustments can keep them viable. The overhead (of the "free masternode coins" is felt in terms of marketcap share as described above. See this post.