2x the collateral price worth of Hive is moved from useraccount to the hbdcollateral account and HBD is created and deposited to the user account.
This seems over-complicated in my opinion, more so if you account for the fact that when the operation is finalized the median price is used to make the conversion.
The comment about doing it in that way because it's good PR doesn't convince me that much. As long as the code accounts for not exceeding the 10% debt ratio it should be good enough.
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Holding the funds in a account vs just having them disappear and re-appear isn't particularly more complicated. It's a pretty trivial difference in the coding, or we wouldn't bother with it, just for PR. PR isn't perhaps the best way to put it, it also makes it easier to track how much has been locked up. Which people might be interested in.
That's a more logical explanation. Being able to track how much is in the process of conversion is a plus.