You invest to ultimately be more happy. If you sell investments to purchase quality-of-life improvements, this is great for you. This is not about phylosophy or ideology. Do what you are comfortable and happy with. It's easy if you have multiple millions lying around. If you don't have that and you want to sell some bitcoin to upgrade your car to the dream model you've always wanted. Do it. It will make you happy. Would you be able to sell it for more fiat later? Probably. Will you pay taxes? Yes, always on everything. But having bitcoin on your wallet when dying does not make you happy either.
Birrowing against crypto is essentially increasing the risk of an already risky asset.