I agree with you.
Staking pool should not be done diluting even more the value of $POOL. We should avoid for example to put more $POOL in circulation from the treasury to subsidize the staking pool or the TVL.
Burning to create value has never worked either.
One of the many possible way to make an economically sustainable staking pool is to diverge part of the prizes to it:
as an example for every 100 $POOL won by any wallet we send 90 $POOL to the winner and and 10 $POOL to the staking pool.
This is a way to make $xPOOL holders win, creates a sustainable revenue (apr, apy, dividents, call it as you like).
If we want to care about depositors too, and why not, we can send 5% to POOL stakers and 5% to TVL depositors.
Percentages are just examples of course.
Edit: $POOL staking pool: an economical sustainable proposal