By the same token, if the majority of Reagan LPRs doesn't pursue citizenship, then what's the problem with giving them a path there? Xenophobes are so afraid of undocumented aliens becoming citizens, yet even flat out legalization doesn't turn most of these foreigners into citizens.

A non-immigrant permanent residency sets a dangerous precedent for a second class citizenship. A green card holder has limited rights, but it's ok because if you can't bear it or if the law becomes more restrictive, you can always file for citizenship. The same can't be said of non-immigrant PR.