I use it weekly to pay php freelancers I hire in India. I also have 3 clients whom I invoice in bitcoin. Works fine for me, as I'm sure it does for others.
I use Bitcoin for real transactions with some value behind them. Sounds like a PissAntCoin sidechain would be right up your alley.
But anyway, get back to my points above. How do investors handle the coins to be pegged? I thought that only the holder of the private key has any claim on a bitcoin. They will need to hand them over, no?
Again, you really need to brush up on some of the 'elements' technology that the Blockstream guys are working on. When you hear terms such as 'timelocks' and multi-party signatures perhaps they will start to mean more to you. Probably not though...you may simply not have what it takes to conceptualize some of the non-trivial use methods that others have moved on to.
Annnndddd.... you still haven't answered the question. If you wanna play the sidechain game, hand over your bitcoins. Simple.
All these things are features that either do not work or do not exist now - and implementing them will further increase the size of a transaction. Looks like you are curing blockchain bloat with.... blockchain bloat.