They are practical for some people.
1) first gen have no noise isolation/cancellation, which means I can't use them in noisy environments.
2) I have children. They will be eaten, played with and generally put places I am not party to.
3) pros have noise cancelling, which is ok but they don't work in places where peak noise is 75 db+ (ie loud train/car), The noise isolation is uncomfortable to get a good seal, though its less for some people.
But again, you are missing the broad thrust, they are headphones, not a platform.
IIRC people were mocking the first generation of airpod because of their ridiculous look, and people adopted them in spite of their look. Now that they are more mainstream it’s easy to forget.