Preferential Inflation

So I went to the bank to see what they could do
They said, sir, looks like bad luck got a hold on you
--Simply Red

Many people seem to believe in the value of inflation (creating new money out of thin air) to bolster economic activity. Inflation is ostensibly referred to as 'money printing.' But in modern monetary systems, most money is created electronically rather than in printed paper form.

Primarily, inflationary cash is disseminated using one of two approaches. One approach is via the 'credit money' channel. The Fed begins the process by suppressing interest rates, and then lending digital money (created out of thin air) to large finanical institutions. These institutions either expand their own leveraged loan book using the credit money borrowed from the Fed as collateral, or they trade the credit money for their own account (again, often using leverage).

An important thing to remember about credit money is that it is a liability. Money created in this fashion puts someone in debt to someone else. Credit money disappears when loans go bad or are paid back.

Via the various 'quantitative easing' (QE) programs, the Fed can also give liability-free money to financial institutions. After the institutions purchase Treasuries and other securities on the market, the Fed buys those securities from the banks. The securities go on the Fed's balance sheet; the banks get the newly-minted-out-of-thin-air cash.

My question to those who see inflation as an economic development tool is this: Why do you endorse inflation being done in this manner? Why is it acceptable that printed money goes to financial institutions first? It is well known that early users of newly printed cash benefit the most. Why is it ok that financial institutions get preferential treatment?

Why isn't it more equitable to simply print the cash (rather on paper or electronically) and then distribute it directly to the citizenry?