It is often the case, that when something is called stupid, it isn't.
As MassPilot pointed out, lottery winners usually take the lump-sum payout and then squander the proceeds, becoming broke in a matter of years. That's what I'd call stupid, but it's how people really are.
What should they do instead? If they have a lump sum and wish to live on it indefinitely, the most that that an early retiree can draw down is about
4% each year, if they want to avoid risk of bankruptcy before death. Even that has some risk, and advisers say that a drawdown of
3% is safer. That's just a fact of personal finance. If you win $50 million, and you keep $30 million after tax, you'll have an annual income of $1.2 million if you spend at the more daring 4% rate. A depreciating asset like an airplane should be purchased from that annual income, if you are a prudent investor. So I'd say that a new plane with an initial outlay of $2 million is about as expensive as the prudent retiree should dare, with a fluctuating income of about $1.2 million. And it so happens that a new Cessna 208 costs
$2.0 million.
Not so stupid, after all.