The BTS order book, volume, and liquidity will be split in between ~20 SmartCoins, with a maximum of 1/20th the liquidity in each market. Realistically, you can expect at least around 1/3 of the liquidity if bitUSD, bitCNY, and bitBTC are the only SmartCoins used as on/off ramps. To get the best price on BTS, someone would have to sell/buy a small amount in all 3 (or 20) SmartCoin markets, then sell/buy all of those on centralized exchanges... what a pain in the ass. Those that don't take the time to do that will be taxed.
There will be spreads among the centralized exchanges and decentralized exchange for SmartCoins, effectively taxing the on/off ramps.
If someone was buying BTS (Smartcoins on a centralized exchange -> DEX) then they will need to pay the centralized exchanges' withdrawal fees, increasing the tax of purchasing BTS.
Then you get into the issues about BTS left on centralized exchanges after this goes into effect. Like sharedropping, some exchanges would be happy pass on the new tokens to their owners and some won't. Do you guys really expect exchanges to cooperate and go wayyy out of their way to facilitate the transition? You guys expect them to take the time, not considering the headache this would cause, to work this out for BTS shareholders for free? They then need to go through all the politics and get in the middle of the situation... what price do they sell at on the DEX? what bitAsset should their users get? If there's not much liquidity, do they sell at a discount or sell them slowly over time? The issues go on and on when it comes to exchanges and the transitioning period.
People buy BTS to speculate in BTS, not to use Smartcoins. Smartcoins are seen as being risky derivatives subject to systematic risks. If people are forced to enter what they see as a risky derivative subject to systematic risks, will they decide simply not to enter at all? What if someone doesn't like the risks involved with Smartcoins, but wants to use Bitshares for other reasons? Like: prediction markets, stealth transfers, quick confirmation times, etc.. (surely there are many features to come like MAS etc...) So, because someone doesn't want to use SmartCoins they will not enter the Bitshares ecosystem at all.
Then you also say that workers will get paid in SmartCoins. So, you will be printing BTS to short SmartCoins into existence? Which is similar to my idea for SmartCoin liquidity that I received so much hate from (ironically from tonyk himself). This will ruin the integrity of the peg... it can be manipulated... etc.... (insert all of the arguments you guys brought up against my proposal here) ...
This proposal seems a bit desperate and risky. This adds extra taxes to casual users that don't want to spend the time to do all these extra steps cost efficiently. Taxing casual users and speculators doesn't seem too smart. There are a lot of random issues that pop up with this as well. I am sure I am only scratching the surface here.