I agree with most of your assumptions, but I do think you overthink this too much. Perhaps people just think it is fun to try a new use case for cryptos. Gamification on blockchain is the future after all. Cryptopimp and crypto puppies on Steem next:) Anyway, what I learned is that Ethereum sucks (some even believe it is a trojan), and that is very bullish for Steem, EOS and BTS, that can handle far more transactions.
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Yes, may be it just finny kittens. Looks like whole ETH network was built for only one funny dApp.