No, it doesn't. LEO pays out liquid rewards, instead of powering up half of them. But you still need to power up LEO in order to get access to the LEO inflation distribution. However, the power down period is already drastically reduced compared to HIVE, with four weeks instead of thirteen. If we eliminate Hive Power (or LEO Power) completely, there would be no powering up anymore and all tokens would be 100% liquid all the time. The question is, how would we handle inflation distribution that way without opening the doors to massive abuse?