I think the biggest issue with BitAssets right now is the forced cover at 110% feed on expiration. If we're going to have expiration at all, it should force a cover at the feed. As it is now, longs have no reason to sell at the feed, since with a little patience they can expect a forced buy at +10%. Now that shorts have figured this out, they're mostly only shorting at a price limit of about +10%, so the peg is actually being maintained pretty effectively at around $1.10.
The new BitAssets 3.0 proposal mostly fixes this by moving forced cover to -1% instead of +10%, but it seems like a major overhaul where a few fixes would be sufficient. If it's necessary for longer range plans for the bond market it may make sense anyway.