SBD doesnt have the transaction bottleneck problem that BTC has, so purchasing latency is quite comparable to the USD

Hypothetically, if SBD reaches $1000, I can still sell a pound of tomatoes for 0.001 SBD. The SBD will still serve the utility needed by both the buyer and the seller.

The only problem is reducing price volitility (stabilizing prices)

As with all currencies(crypto, central bank fiat, seashells, etc.), there will always be some level of volitility. The volitility will decrease with time and use. Eventually, SBD and STEEM can reach some level of parity but that comes with a reduction in volitility.

Hard pegging the SBD to the USD will mean the people holding SBDs will have the same ammount of control of SBD value as they have with USD value, which is none.

Telling people: "This new STEEM crypto currency is pegged to the USD, so you'll only lose about 2% of your purchasing power per year!" makes it hard to convince people to use it.

The most beautiful part is that the design can be tweaked to fit the needs of the users.