Ok apart from fiat goxing, issuing IOUs on the blockchain makes development of onramps a lot easier, because the onramp doesn't have to store any BTS. All the onramp does is issue and cancel IOUs on the blockchain, which users trade from their own personal wallet. Compare this with a currency like Bitcoin that doesnt support blockchain IOUs, which requires that an exchange store both the fiat and the crypto.
At least that much is true correct?
If I issue IOUs, can the holder make an order to swap for BTS/BitUSD/whatever by paying fees from the IOU? The user wouldnt have any BTS at that point to pay the fee with. And does that mean that holding the IOU would accumulate yield from other user's transaction fees ?