AG,
I think what he means is what I observed in the 10 or so years I played golf with a handicap, I never once put in my score in front of anyone else, nor did I ever watch anyone put in thier scores, nor did I ever observe anyone else watching in either scenario. Its 99% honor system (organized tournaments being the exceptions)
While I agree there are likely more Vanity caps out there than bagger caps, i would guess the % of those who regularly enter local tournaments is flipped. I played in them cause I did so with a few buddies and it was fun to be competitive at a real level, so winning was secondary. But it didn't matter because almost every one I entered, at least one sometimes two people, from the 14-20 flight which I played in, would drop two sub 80 rounds and crush everyone.