You cant collateralize HE LEO. It is only available on Maya. To so any of that requires bridging the Leo across to Maya.
As for what people choose, there majority might opt to keep things simple. Then there are those who want to utilize the DeFi features for greater gains.
It is up to the individual. Those who are happy with powering up and curating can still do that.
This creates more outlets (utility) for Leo. That is all.