Yes. You’re missing the fact that, just because you don’t see the point, others can.
If you don’t want to look at the artwork on your TV, you don’t have to. Others would like to do so.
Is it possible to explain why? Or why we prefer a certain flavour ice cream over an other? Does everyone have to justify their tastes?
I’d have thought the easiest explanation is this. When we were all vinyl, people loved nice packaging, booklets, gatefold sleeves, etc.
When we went to CD, even CD lovers missed that large scale artwork. When we went to controlling streaming apps from our phones, the artwork got even smaller, and less satisfying.
Now we can put it on a big telly, it’s bigger than a 12” gatefold used to be.
And that’s as good an explanation as I can give you.