I gave it another thought… I’m now even more convinced this min fee is a terrible idea. So we established that it’s purpose is to stop the race to 0.
Is the race to 0 a problem for network security?
No, there will always be someone validate the system and reap the rewards. Someone will take their place. Epos is making sure of that.
It’s a free market. Low quality hairdressers might be running around and offering free haircuts. If they turn out to look like shit the customers will learn from that and go to a professional next time. You just have to give them time to learn.
Now who is profiting from the fixed fee?
Self Validators:
Hell no, they are paying the fee to themselves.
Small Validators/Newcomers:
Meh, with those little delegations it barely makes a difference. Yeah, they might be earning a fixed income, but they are robbed from the opportunity to use 0 fee as a marketing tool. Not all small validators are incompetent. Some might just be late to the game, and they are starting to play with an entirely different rulebook where the winners are already set.
Big Validators/Established Validators:
Hell yeah. They had all the time to scoop up major delegations with 0 fee commissions and now they can’t be undercut anymore. Latecomers… bad luck.
The rise of 4% to 4,4% (from 10 bls on) doesn’t make a difference. Who the hell is gonna take the risk to try a new validator to avoid a fee of 0.4% to of a 10% APR?
Delegation movement on chain will essentially stop. Say Bye Bye to any possibility of stake-decentralization 
Bonus Problem: Just imagine the major fees coming in once harmony goes to several $bn mcap. Are we gonna re-negotiate the fee and piss off the biggest up-keepers of the system? We are just further solidifying a flawed system and minimizing its capabilities to self regulate.
Bottom line: If you’re not earning any money, raise your fee. If someone undercuts you and gets some of your delegations? Bad luck, that’s how markets work. It would actually beneficial for stake decentralization. This proposal is working against it.
I got a proposal that would lower staking rewards of regular stakers from 10% to 9% and will incentivize small validators to spin up their nodes with EPOS like proportional rewards. At the current validator-numbers, people would flood to validate themselves.
Take a look: