> I assumed "the project" meant that the tip goes back into a general pool still dedicated to the particular project the tip was originally designated for.
This interpretation is correct
This interpretation is correct
Why is it a bad idea?
Maybe people have already stated the reasons. And you (wrongly) think you have effectively refuted them. You are being, to choose a mild word, dense.
Sometimes it's best to just look at how mad you are making people, and draw your conclusions from that.
You are making something people don't want.
I've being reading through this whole debacal myself, and I haven't seen any good reasons so far.