It does. But the majority of people who follow Ethereum closely view non-algorithmic stablecoins as generally an evil. Ideology means little to most people yet I think the decentralization ideology around Ethereum has had and does have an impact on enough people to sway the network in a certain direction. It's early. Fingers crossed.

We'll see. Stablecoins are a workaround for the current price fluctuations, if the cryptos stabilize they might replace the stablecoins at some point in the future.