Problem with SYS that everyone who wanted it already has it (ICO lasted long) and other people have no reason to buy it. This is why there is no demand.
Yeah, it will be tough recovery. Merged mining together with regenerated fees also going back to miners will bring more dumping every day because it cost them nothing to mine (it's a bonus, free money).
Merged mining = more hash. Not more rewards.
Regenerated fees will reuse the fees, not generate more that does not already exist and is all based on usage. Usage goes up = more rewards for miners.. But will at the same time also require that people get Syscoins from somewhere to actually use the services.
(So yes it is a good thing)