...the platform and userbase is definitely growing.
Not much.
It is even 1/100th of Ello and Tsu's peak rate of signups and both of those died.
Sure, I can only imagine the headlines "Bitcoin Social Media Platform scam 100k users". "A Bitcoin based social media platform called "Steemit".
It has the potential to reflect very badly on Bitcoin, blockchains, and crypto-currency. Especially later when it becomes common knowledge that it was 80 - 90% premined and the whales were cashing out from the beginning, while the n00bs were fooled.
Nevertheless any news (even bad news) is probably promotion to the masses, yet if the masses are always hearing about the problems (theft, scams, etc) they might become callous and calcified against our sector.