Simply the existence of the KE ratio implies that everyone on Hive is being overpayed and the money they earned was not worth the value they produced on the network. And rather than try to fix overpaying everyone we'd rather just tell those overpaid employees to reinvest all their earnings back into the network so we don't bleed out. But I digress.

It doesn't imply that you have to be below 1 KE ratio though, but it also helps you find out people who are actually a drag on the chain. We are all investors of this chain, why should we vote for people that is here just to reward themselves rather than invest in others? Like if I see someone with a KE ratio of 30, that tells me all about if I should vote for them or not.