Sounds like your goal is maximizing the size of the portfolio say 10 years down the road? Or maximizing what you leave to heirs?
For some folks, having a larger portfolio is their goal, so they are willing to make sacrifices - lower withdrawals today, belt tightening during market downturns, etc., to accomplish that goal.
Some of us are more interested in spending (and gifting) more in the early years and don't plan to leave a lot after we pass. We just want the portfolio to survive during our lifetime, and prefer to live with less year-to-year volatility.
It really depends on your goals.
I'm not entirely sure how you derived that from what I wrote. Actually, my goal is very similar to yours, as stated in the quote above. At this early stage of ER, legacy considerations are a distant secondary objective for us.
More to the point, I'm just questioning why I'm holding a 5% cash reserve, given the performance hit and other issues I laid out. I'm pretty sure it's because I read dozens of posts on this site and elsewhere suggesting I need to "protect myself against having to sell when equities are down." Turns out, with rebalancing, that's just a kind-of bucket mirage. I'm embarrassed to admit that I had not previously thought this through. Anyone who does will inevitably reach the same conclusion.
I totally "get" the emotional calming effect that cash has, and I am certainly not immune from those effects. As I've said before, I'm still learning the ER ropes and largely untested in rough seas. And yes, it doesn't cost an arm and a leg if one is reasonable about the number of years of cash. I may decide to continue holding 5% cash for AA reasons and the emotional comfort that it provides, similar to an emergency fund. But I'm glad I finally read the Kitces material and have a more rational foundation to evaluate this question going forward.