My loaning profits are not nearly as high as one may think by seeing my point stash. I'm sure I've collected more more SBR freebies (daily, trivia, etc.) than I have netting from my loaning activities. If profit was my only motive, I'd be an idiot as it is a lot of work for not much return. Every 1 stiff (and there are plenty of them) wipes out the profit from 5+ good loans, for example. However, I find the activity enjoyable and don't see anything wrong with providing people with a service that they want.
I also don't think betting points (and borrowing points to do so) makes one a loser by any stretch of the imagination. Most people are recreational gamblers with no real illusion that they'll make a profit in the long run. If you are playing for fun and can get the same enjoyment without risking money, then by all means playing with points is the smart way to go. The stupid thing to do would be to waste some of your hard earned money to get a thrill that you can get for free on SBR.
Thaddeus