Lending is for People with large amounts of bitcoin. As fiat dies the amount of bitcoin that will be impaired by their loans will be minuscule and they will have lived free of income taxes. Using the debt based system against itself isn’t the worst idea but it should only be attempted once you have your fat cold storage stack.
Debt is a virtue in fiat world, and we are very much still in fiat world.
I’m a simple man so I just mine fiat and stack sats, but I could see the appeal for those with thousands of Bitcoin who are facing massive tax burdens by selling.