Now I'm confused, I thought the 32ETH is all we need to stake ethereum but now I'm hearing about validating, I don't want to become a validator, I just want to hold my Ethereum in staking mode and earn more ethereum, now that things are more complicated what is the reason for switching algorithm?
You will be able to do that too without being validator.There will be public pools where people will be able to join with even less than 32 ETH and get the staking reward. I expct that Binance and other big exchanges join so we can hold ETH there.But staking this way will probably give less than profit than being a validator as those pools will take some percentage for themsleves.