Pros of this: Direct rewards straight to stakers.
Cons: Exclude other participants such as liquidity providers who are essential. This would eliminate future ASR and Jupuraries. People would participate less in voting. The yield would be variable due to the nature of the market, staking might not be as attractive.
The idea of a dividend does sound great, but if a company is paying out those dividends, the price would become less reflective of the earnings, i.e, the dividends will be the realised earnings for many. So it doesn’t guarantee that the price will increase due to the dividend. I say the price increases up to where the yield is favourable. I do like the idea of getting stable coins for staking JUP but it might not be a straight forward as you envisaged.