Certainly some people use the arrow as a reference. Even some people who shoot instinctively use the arrow as a reference. Rick Welch, for example, who is an instinctive shooter, is aware of his sight picture in his peripheral vision, and the sight picture includes the front of the arrow. Howard Hill's description of his split vision shooting method seems almost identical to Rick Welch's instinctive method, but Howard maintained that his method was not instinctive. Who am I to split hairs between two such illustrious shots?
Although many people do see the arrow when they aim, it is not necessary to do so. Nobody would say that a football or baseball player uses the ball as a reference, because it is simply not visible until it has left the hand. By the same token, using a low anchor on a close shot, the arrow is simply too far below the target to be of much use as a reference. Since I shoot gap for longer shots, I have experimented with using gap for 20 yard shots, but I have to go out of my way to notice the arrow point at that distance, and with the error that is introduced by trying to measure that large of a gap, I'm better off shooting instinctively. I can honestly say that I am not aware of the arrow point at all when shooting at close distances. Now at 30+ yards, when the arrow point is right there in my field of vision, I might as well use it because I'm going to notice it anyway.
And, I will say that I do pretty well using instinctive from about 25 yards in. Not shoot the spot off the ace of spades Las Vegas well; for that I'd have to work out a higher anchor point where my arrow point was close to the spot, but well enough to be comfortable hunting at those distances.