Comment by OkayPhysicist

It's not about players not wanting to win, it's about wildly heterogeneous perspectives of winning. If we're not playing for cash, walking away in first place with $30 of the $100 bucks on the table isn't much different than walking away in first place with $80 of the $100 bucks. On the other hand, a second place win with $40 might be considered worse than a first place win with $30 dollars. With cash, those dollar amounts mean something intrinsically.

It leads to overly aggressive, low-information gameplay, because players will opt to "either win or lose by a lot" over "lose by a little".