The people I know with a net worth over 10m do not display it. Why would they want to. It only has downsides and no upside. Same applies to other forms of status/rank/belonging.
(Not contradicting your points, merely adding to them.)
If you want to experiment with that, try to NOT match other people’s style AND radiate a deep sense of security/belonging/entitlement. Do not hide your (other) insecurities; those with status don’t have to hide their authenticity. This may sound like a contradiction at first, but you can develop an universal sense of belonging that remains authentic. You will be surprised which people will suddenly find you to talk with you, once you stop seeking their attention.
> AND radiate a deep sense of security/belonging/entitlement.
That's also signaling status.
"Don’t be so humble — you’re not that great" -- Golda Meir.
And of course:
"You cannot not communicate" -- Paul Watzlawick
We should strive to remove ourselves from these games as much as possible and not to lean into them as LVMH would like.
Rejecting such superficial signaling only enhances one's life, IMO.
Veblen goods are the most simplistic and superficial form of intentional status signaling and yes, the world would be much better off without them.
Other kinds of status signaling are more interesting and more subtle. If I talk about my weekend softball team, I'm not doing it to impress anybody, but it unavoidably does convey some things about my status.
It tells you I almost certainly have a car, I have leisure time, people like me enough to at least tolerate me on their team, that I have a few hundred dollars to spend on gear/fees, and that I have some basic level of physical coordination/strength/ability. It also strongly hints that I grew up middle class or higher because those are the kids who were most likely taught to play baseball and continue with that as a leisure activity into adulthood.
Not sure how any individual or society could function otherwise, due to the limits physics places upon us.
Signalling Status plays a big role in group formation/group maintenance/social cohesion etc.
The larger groups grow, the more complex the group dynamics get, keeping groups of people together and preventing them from disintegrating is one of the most complex problem we face, given all the differences in culture, religion, language, class, personalities, ambitions, values, needs, intelligence, skill, education level, interests etc etc
A short cut frequently used (cause its easy) is using Leisure and Luxury (see Theory of the Leisure Class).
"So you like what I wear, where I stay, what I eat, who my friends are, what toys I have and want to be like me or hang out with me then do what I say". This works pretty well. In fact Veblen's prediction in Theory of the Leisure Class was that since Tech has a tendency to eliminate waste, tech would eventually eliminate the need for a Leisure/Status signalling Class that keeps large groups from unraveling.
But social cohesion of large groups is such a complex problem, society even today requires all kinds of Status Signalling to keep the groups together.
If you find ways to keep groups together without status signalling you are onto something special.