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RE: Are STEEM Witnesses A Cartel?
Option one you give might have some merit, but in a limited form. Some have proposed decaying witness votes for accounts that don't transact in some amount of time, say 6 months or a year.
Option two would not contribute towards a robust and secure network. You address the concern a bit but to periodically throw out people with experience and combined institutional knowledge of Steem and running Steem nodes would be a great mistake.
The option two situation can easily be addressed. Steemit INC ninja mine stash is to be used to promote growth and development so they could do a couple of things. Delegate power to a person's project like in the case of DLive, DTube, eSteem ......etc.
Or they could pay a person a consulting fee or advisory fee during the 6 months they were rotated out to continue to support their efforts. If they felt like someone was super helpful in Discord or Steem.chat at helping others get Witness nodes up or helping troubleshoot issues they could just pay them some consulting fee to continue those efforts.
If someone like @roelandp gets rotated out and Steemit Inc for instance feels his work on STEEMFest is valuable they can just pay him the consulting fee or delegate power to him for his efforts....etc.
There aren't really that many scenarios where it would make sense to continue funding what someone is working on. Just consider the 6 months off like shutting down mining equipment when it is 110 degrees out and crypto prices are in the dumps.
It is easy just to think that I'm only bringing up these issues as a complaint because I'm not operating a Witness node but I have seen the scenario over and over again and I know how unprofitable it will get and I'm not in the "club" so it wouldn't work out.
In general people aren't seeing that much opportunity here. There is a very small group on this platform that is finding something profitable to do here which is leading to high attrition rates and lack of interest for people to get deeply involved in the community.