Speaking as a homeowner, an increase in home value does nothing for me.

I plan on living in this house until I croak. If I do happen to move for whatever reason, the increased value doesn't help since likely, ALL houses have gone up. My $300K house being worth $600K doesn't really help when the house I'll need to buy is also now $600K.

If you don't have descendants/heirs, an increase allows you to withdraw a massive amount of equity. If you do have heirs, a value increase will do tons for them (further increase inequality in the next generation) if it does nothing for you.

If you plan to live in the home until you die, an increase in home value can be tapped via a reverse mortgage to pay for in home caregivers if you are sick near the end of your life.

Additional equity in a home is useful for a lot more than buying another home, which (assuming all homes inflate equally), you are correct that it is of not much value for.