As an advocate of Decentralized Identity and Verifiable Credentials (W3C) I’m often asked what can NFTs do that Verifiable Credentials can’t. Still haven’t heard a compelling answer.

decentralization enthusiast. dev @ TBD, focused on decentralized identity & individual privacy

Have you read this?

https://vitalik.ca/general/2022/06/12/nonfin.html

Values-Aligned Communities | citizen of Black Rock City

yes, and mostly agree with it. I like DID methods like ion for exactly the reason Vitalik calls out. Still doesn't necessitate NFTs. Privacy and off-chain first is always better.