Actually you understand it perfectly. I am the one who didn't understand your strategy. Impermanent gains is a cool concept, hadn't thought of it like that.
I think most people are used to think in terms of portfolios, with percentage allocations to each coin.
I would tend to think: "I decided to hold 10 ETH, so if I provide liquidity with my 10 ETH, I would lose ETH on the way up".
After reading your original post, I admit the ETH/DAI strategy is great. But it is also capital intensive. If you want to make a $5,000 bet on ETH, you must have $10,000 in DAI and $10,000 in ETH, then provide liquidity with it.
So you don't only make half the gains on your ETH, you also make no gains on your DAI, so you actually make 25% on the way up (and 75% less loss on the way down). It is a very conservative strategy.
I personally prefer to fully invest that $20,000, as the rewards are potentially so much higher.
You could argue that you're not willing to invest fully in ETH. You only want to invest $10,000 not $20,000.
But then I would argue that holding the other $10,000 in DAI is also risky. First, because of smart contract risk as an LP, and second because of the DAI peg.
Personally, when my money enters crypto, I consider it invested (even DAI). I can't stomach holding real savings in DAI or USDC. So using your strategy will just remove too much gain potential. But I see where it comes from.
In essence, your strategy is the opposite of leverage/margin trading. With margin trading one increases risk and reward and pays fees. With your strategy one decreases risk and reward and earns fees.