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Has anyone actually found any use for hobbies, other than as a money sink and a waste of time
Not much of a money sink. It is essentially free. You can spend a few coins on bait (which the jury is still out as to whether it improves anything), or a player-crafted pole (still likely to be very cheap), but thats it. Your fishing pole never needs repairs.
Some of the fish can be turned into stat food by cooks, so fishing does have some benefits other than just fluff.