Ironically if liquidity depth is significant enough, YTCing isn't necessary... but at the moment there is no way to get liquidity depth without it.
Staking could be default, and opt-out. Without flashloans this makes sense as there will almost always be leftover base tokens to pair with. With flashloans, this is not the case.
When Yield token compounding, allow users to automatically provide liquidity to the corresponding YT/BT pair.
This is healthy for the element protocol as YTCing increases the number of YTs in circulation, and should give better liquidity depth.
This could be beneficial to the user, as they will receive trading fees on their YTs.