Idea
The Pun Tyrant
And to that I would say I don't think they are thinking that far. Maybe it was like that at first, I wouldn't know, but at this point I think people just do it because they see others do it and assume that's the way to do it.Again, I really do think it's just them trying to sound smart by using a word that is akin to "literature" and failing to realized that literacy doesn't mean what they want it to mean.
That said, I would agree a lot of people do think it makes them look better to label themselves "literate". Not necessarily smarter, but better.