It’s utility means that it’s not just a coin to hold it’s meant to be utilized.
Great observation you made here. And great point to illustrate to people who think hive has no intended utility. The problem is that the hive that is given out (by centralized big stake holders) do not equate to extra hive most of the time. Most of the rewards go to content creators, who don't bring in people or capital from outside Hive, which is why this system is not sustainable if authors don't bring in external capital/eyes. And they rightfully don't do so, because they are incentivized to please whales and big curation groups.
Great view, I am quoting this in my next post.