NFTs are probably best thought of as a recapitulation of status goods into the digital world, outside video games. The physical good versions has never made sense to me either.

Thorstein Veblen already in the late 1800s had pointed out that an object's utility as a status signal increases in tandem with its uselessness. The object must then also be recognized among peers as difficult to obtain. For the moon shares analogy to work, being objectively worthless or grossly overvalued is insufficient, it had to have also been exclusive and coveted among the "high class".