I totally agree with your first point.
Money cheapens social interactions. It reduces them to competitive advantage, exploiter or exploited. I do not want to interact with anyone that way, ever. Certainly not friends.
But I acknowledge that this is oversimplified. It is possible for mature people to find an appropriate level of heightened excitement/tension due to the elevated consequences of money. Most people have the self-control to handle/compartmentalize it, or to avoid levels where the consequences become meaningful to them (this gets harder if alcohol is involved, which it seems to always be).
This appropriate level will vary by group, but there seems to be a persistent conflict between "excitingly meaningful" and "respectfully modest" amounts of money. And of course everyone's monetary circumstances are different. And there's a social pressure to participate which may exceed your circumstances. And there's an issue where the strong (experienced) players have no choice but to prey upon the weak (new or less smart) players. These issues are the inescapable ugliness that I just can't get over.
So I will never play any game for money, and I sometimes wonder whether people who enjoy such predatory thinking patterns are deserving of a standard level of trust.
I know it's not that simple, but sometimes it is.
The other arguments, about teaching strategy vs tactics, human psychology (under stress), working with imperfect information, calculated risks, etc, are all valid and important too. And I believe that playing for money elevates these lessons. Some people (for pleasure or necessity) choose to be hard-nosed in life. My enduring privilege is that I do not need to be, and I am very grateful for that.