It's both. If you paid attention to the series at all, the charm/spell was put in place initially because Inuyasha was a dangerous demon. And there's even times where Osuwari actually comes in handy and saves her.
I understand guys being wusses or whatever, but Inuyasha isn't a wuss by far at all. It's not like he's 'sitting' because he wants to. The necklace just forces him down.
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