Judging from the use of it in the demo game, it seemed like everyone was afraid that they'd get cooties if the luxury slider went to 10%. We might want to use it to increase our production, especially when the science slider is at 10%. Let's say we have a plenty of gold. If our cities stay at size three, we can build swordsmen or horsemen in 5 turns, at size 5 we can build it in 3 turns. Aren't we better off with the luxury slider up, since we almost double our production? The other players won't know what hit them, since their assumptions of our strength are based on 0% luxuries.
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