I'm with you on most of your post, and I agree with the overall message. But, think you greatly understate their manufacturing and engineering ability. They are quite likely also the best run watch mfg from a manufacturing standpoint. Their degree of "in-house" and vertical integration is nearly unmatched (GS is the only other that comes to mind, at much lower volumes). Their engineering innovation doesn't get much attention, but their watches are engineered as much as any other brand (or more). What's particularly stunning about Rolex is their ability to mass produce a very high end product (in terms of engineering, in terms of quality, in terms of fit/finish*) at a scale no one else can dream of. While it's easy to say they are limiting production and driving up their values (and yes they are, and so are a ton of other watchmakers), they are shipping more product than anyone at the high end.
Start about 2/3 down for a look at modern Rolex mfg. They test and hold their product to a tighter standard than most mass-produced watches (and likely tighter than most independents): https://www.hodinkee.com/articles/inside-rolex
*Counterpoint: Walt Odets' infamous Rolex Explorer analysis: https://www.timezone.com/2002/09/16/the-rolex-explorer-ref-14270-part-1/ https://www.timezone.com/2002/09/16/the-rolex-explorer-ref-14270-part-2/
Is it the boring, safe choice? Yes. Is the majority of the customer base a turnoff? Yes. But is it any less a watch or mechanical device because of that? My opinion is no.
Not a Rolex owner, unlikely to ever be, for many of your same reasons. But I have huge respect for their mfg. (I work in automotive; it's much like Toyota for me. People mock Toyota for lack of innovation, for boring cars, for ancient infotainment, but they've dominated quality statistics and resale for nearly 20yrs, while at the same time maintaining profit margins above industry averages. Doing what Rolex/Toyota do, for as long as they've done it, is an amazing engineering/mfg feat, not achievable only through marketing or limiting production to drive demand.)