Definitely some newbies will use fiat to power up their account. That's what I have done. It's useful to have a lot of it. Steempower is to bloggers what lipstick is to ladies. It gets people to look at you or in the case of steem power, to read your blogs.
Simply put, it is another vanity asset.
Lipstick, perfume, a Rolex, a Lamborghini, or steem are desired because they
Interesting analogy and one that is accurate.
There is no doubt that SP (and the associated VP that goes along with it) gets one noticed.
It is also the engine that drives this ecosystem so there is a practical use along with the vanity. I keep powering up to add to my standing on this platform. That is what the system was designed to do...give more power to the people who contribute more. Of course, on a platform like this, said power is spread across the entire user base so it isnt as if one is in control.
That said, I know many who would pull out their fiat on a large pullback and power up more. This is the cycle of success which is almost guaranteed.