Questions about the current state of Eth regarding issuance, burning and fees. Help me understand the logic behind it..

Can someone explain what exactly was the value proposition of eip 1559 for users in keeping fees high while burning some of them, as opposed to simply lowering fees by the same percentage that now gets burned?

Moreover, it seems the burn rate goes up with network utilization, and that seems counterproductive to Ethereum's main purpose as essentially a vassal for tokenized projects, making simply holding and not using Eth far more valuable than most of the projects' tokens.