Many do. And even more have spouses who have their own status. The point is, there are a significant number of people who do want their family members to earm EQM, and don't have them fly once a year on an award. You claim that most 1Ks do that (only fly family on awards) - I do not believe that's true (based on the 1Ks who I personally know), and was only citing one example.

I suspect the latter is more common. As in my case where I am a 1K but Mrs. gre is a 2P. After she earns her 2P each year I start considering buying her tickets with miles depending on the price.