So FB has plans to move their platform to blockchain?
Not unexpected.

The bigger question is what is wrong with steem?
What is it that FB brings to the competition table that steem does not have?
Yep, users, lots of them.

Perhaps instead of flagging users on steem, instead of self destruction, waiting on mystical future features (yep Dan Bricklan thought graphs would save visicalc) perhaps steem should look at the opportunity.

Maybe build some bridges rather than new features,

A new fresh UI for steemit might be a start.
Dump the flagging, new users take time to learn a platform.
What YOU think steem should be is irrelevant, it will be what the users want it to be.

The platform & reward systems are in place., bring on the users, make it an easy transition in everyway & they will come in the millions. 

as a side note FB just bought back 9m of their own shares? Why? they are dying, time to pave the way to steem.

Time will tell

https://www.coindesk.com/facebook-is-hiring-5-new-staff-members-for-its-blockchain-team