I think "minimize taxes" is short for "minimize tax liability" and refunds due to overpayment have absolutely nothing to do with that once you've paid enough to avoid penalties and interest (which is only ~90% of your liability).

My point is they’re not doing any sort of planning to minimize their liability. They’re not doing sound tax planning of any sort.

Ah, ok. It sounded like one or the other (i.e., people who inflate their refund aren't planning well) but personally I find that adding withholding at an amount that often leads to an inflated refund is a good low-effort way of minimizing risk of underpayment penalties (and it eliminates the need to think about estimated payments) for those good years where substantial gains unexpectedly occur. Of course it's like giving a free loan, which isn't great, but it's miniscule relative to the time I get back by thinking less. And I definitely minimize my liability -- loss harvesting, avoid short term gains, etc. -- so I am squarely in both camps.

A tax that is refunded isn't really a tax liability, it's an asset making 0% gain or interest, and will be converted to a cash asset within a 18 months or less.

Regardless, most people don't like tax, and there's not much they can do about it if they are W-2 wage earners short of opening a side business or maxing out retirement investments (which isn't helpful to someone trying to buy a house before they are 65).

Even these people try to minimize their taxes so the refund is larger.

By doing what? Letting their tax preparer select the EITC? Calling that a “Try” is stretching it.

Contributing to an IRA or HSA.

Most people do not do those things.

And if they do, they’re likely not doing it with tax reasons in mind.