Most often, I usually give my cookies to either cheer a person up, give as a birthday present since I su** horribly at making graphics, or if they do a wonderful job on either a fanfic, graphic or AMV. My thoughts are to use them for only rewards, and not so much as a popularity gimmick.
Some of the cookies I've received through rewards, such as stating where to find an episode download, or how to work a particular download. Also, I've received them in an attempt to cheer me up when I'm depressed. I actually hate that. It has come to the point that the new members think that the more cookies a person has, the more popular a person is and I don't want people to like me just because I have a lot of cookies. I want them to like me based on their own discretion and their own reasons.
Furthermore, I want people to know that the only reason I have so many cookies is that I am helpful or I have something to contribute. If we quit giving cookies in an attempt to cheer people up, and explain that they're more like rewards, instead of a popularity item, then the system might work. Also, for those that cannot give a proper birthday present for members, then cookies should also be given then because birthdays should contain at least one present.
I hope that this annoying ramble offered some help.