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Pay for the gifts on the registry. As in, "oh we're having a baby! we'll need a carseat and toiletries and clothing!" or "we're getting married, and could totally use a new set of dishes, but also we'd really like some movie tickets". For steam wishlist, it's basically "omg I have to have this dlc, oh and this other one, and that game that I've been meaning to try."
It's literally no different. Nothing's stopping anyone from buying those things for themselves, a wishlist is... just a check list, and on steam it means someone will be clued in to what you WANT instead of just throwing random crap at them.
Speak for yourself.
During sales I normally buy most of the stuff from my wishlist rather the featured items on store front.
The majority of people seem to use the Wishlist as sort of a shortlist. Whenever there's a sale, it's easy to just check the wishlist first.