how about other Stablecoin, tether are audited by regulator and managed by big company, i don't think you're argue is valid
Some people may not believe it again after tether has stated if they were not fully backed by the dollars. I know even some people were accusing this has a backdoor to frozen the user's amount.
This is more than a year i have been using tether and so far i never encounter any problem even i leave it on my cold wallet.
People can do as you do, and I think that can save the value of the money in the crypto. With the volatility of the crypto price itself, Tether can be a way for us to keep the amount of money that we have, while we can directly buy any coins at the market, especially if we can see the price drops too deep. Maybe people don't like to hold Tether for a while because they can not make a nice profit, but Tether itself can save them from the dump for the coin.