The real issue with the vanity TLDs, and many of the newer ones in general, is that they have zero recognition. They are most worthless.

I disagree. No one was born recognizing .com domains, and outside of the US non-.com domains are already quite mundane. In fact, FANGs like Amazon employ cc TLDs quite extensively to segregate marketplaces, and they do just fine.

No, the issue with the new/generic/vanity TLDs is that they've lost all meaning.

This assertion has no bearing in reality, specially given domains like .io, .icu, .info, .site, and even .aws.