It's not covering up anything --it's enhancing the design. It's just wood, nothing holy about wood. This kind of guitar without a pickguard looks silly if you ask me--like the builder forgot something.
Besides, scratchess in the finish kind of tend to cover up the wood too, after a while. And judging from the scratches I've put into my pickguards, it's a good thing they're there!
Ha! just trying to rile you up there Mickguard.