It's your stake, so it's completely up to you how you use it, and I see no issues with your reasoning, they're valid points. I understand some people rely on Hive for a living in less fortunate areas, but it would be nice to see them power up at least a small portion for a couple of reasons:
They could earn more curation rewards in the long run, which would also allow them to support others in similar situations who are contributing quality content.
In general, I think some people are taking advantage of the situation. They're happy to receive support and cash out, but they're not really contributing to help others on the platform. Morally, that bother me.
I believe the platform would benefit overall if people weren't just cashing everything out. Thankfully, it seems like most people aren't doing this.
Yes, you hit all the key points on the head. Their claim of "making a living" doesn't fly with me. Maybe I don't understand, but I think it is them who are missing the picture. Per your point number one, they would be making more of a living and increasing that living over time if they re-invested at least half of their earnings into HP. They don't have to of course, but their excuse does not make financial sense for more than the shortest term.
!INDEED
Many people seem to lack financial awareness. It’s surprising how many I know who don’t budget, save, or invest. Maybe they’re aware, but just don’t put in the effort