I don't mind hoarding the large eye candy when I type ./blakebitcoind getbalance, but this sounds like a failed launch to me.
Blockcount 26164
Difficulty: 0.09428520
The difficulty retarget is totally off. There is a new block every second and the difficulty is about the same as it was 8000 blocks ago. Mining is basically about who has the network speed to add a new block instead of actually solving the block.
Whether it is a premine or a public instamine, this blockchain is not very useful. I suggest reboot now
Most of all i agree with you however i don't think rebooting would solve the problem, moreover it would be worse. There are around 100 miners mining this coin right now and those would be really angry if their coins would just disappear overnight. Of course as a current miner i am defending my point. The right solution i think would be an imidiate hard fork with kgw implemented at block 50.000 so it should be taken as a mined ipo, that early miners got some more shares.