Circulation of bitcoin is a good thing and much needed for the growth of bitcoin. But right now than spending on unnecessary products its better to save the bitcoin and spend actively when necessary products can be bought directly with bitcoin.
spending now is not the smart thing as we are now closed to halving and we can expect higher price by then so its good to hold our coins for next few months.
You are right about that spending right now is just stupid with the halving that is coming, but in fact it also can be good because it is helping the bitcoin of course, the only downside is that there is most likely a price increase coming.