Dake is an amazing wrestler. 4 NCAA titles proves that. He is excellent defensively, he is excellent with counters, and 99% of the time if he tries to outgun you he will. He's already beaten world medalists. And on top of all that, right now I think he's better than the average world team member.
If Burroughs wrestles through the 2020 Olympics I think Dake is his only guaranteed threat. (We'll have to see how Dieringer and iMart develop.) So if Dake stays at 74kg , it makes all the sense in the world.
But imagine if Dake went to 70kg. He could challenge for medals right away. (I believe there will be a 70kg world championship next year even though its not an Olympic weight.) He could also start building a name for himself, and he could get exposure to the high-pressure environment at worlds as he aims to make the 2020 Olympics. I think it makes all the sense in the universe.