Three facts, then:

* Most investors' returns are below index returns.

* If everyone starts leveraging the index, that strategy becomes less effective.

* Leverage subjects you to even bigger drawdowns than just buying the index. Do you think the average investor, who can't even manage drawdowns from the index can handle drawdowns bigger than drawdowns on the index?

Besides, who said people don't make money? Also, notice how you switched from "active trading beats passive indexing" to "leverage the index." Are you saying you can't time the market? That you don't have the ability to make correct decisions about both when to get in and when to get out?