While I'd probably never engage in this behavior, I support is wholeheartedly.
Getting a Fiat loan with BTC collateral means that Fiat inflation (money supply) has increased. This promotes BTC's price, which pays off the loan. The more people do this, the more Fiat is degraded and BTC is pumped...
I.e. this is exactly the speculative attack scenario:
https://nakamotoinstitute.org/mempool/speculative-attack/
