For the latter, making all members merit source effectively means removing the merit-source tag and giving all members 'x' amount of merits each month to distribute. Theoretically, that was something that could have been implemented in the first place.
The issue is majority of any idea that can be thought of Would be misused
It's not that the system is bad is just that it involves humans. And we humans are good at finding loopholes in every system.
The case of everybody being merit source. I saw something similar in Altcointalks and the abuse is obvious.
And even if the merit system is removed, people would still find a way to abuse the system.