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Most people don't want stretched tires. The majority of people like a fat tire. Also people "think" it's unsafe to have a stretched tire. That reminds me, I gotta get my 225 tire mounted on my 9.5 rim soon.
I also think tire streching is retarted, it looks like crap, its not safe, and you have a better chance of f***ing up your wheels.
I agree with you...but it does serve it's purpose. Some people (especially with air ride) prefer a super agressive wheel fitment where the tire is slightly tucking and the rim is leveled with the wheel well or even pocking out...can't achieve that look without a stretch. It looks good for show but I'd never ride around town like that.