The current biggest draw to web3 gaming is the "play to earn" aspect, but what that looks like right now is you're incentivized to grind for arbitrary points, in hopes to get an airdrop at some future date, and you're hoping that the tokens are worth something. I don't think this is the right way to go about it.
I think using crypto as a premium currency is fine, as long as the items you can buy with it are purely cosmetic and don't affect gameplay.

A big opportunity I have still yet executed is NFTs as skins/transmogs that you can earn in game as rare drops. This could be mount skins, weapon skins, armor effects, name badges, etc. 

As a player, if you get the drop you get a huge boost of excitement, and can choose to either equip it, sell it, trade it, whatever, but the power is in the user's hands. The free market can decide the worth of the item, and if the player chooses to sell it, a portion of the sale can always go back to the developers, even for secondary+ sales.

Think CSGO skins onchain.

I completely agree! Turning NFTs into rare cosmetic items could truly enhance the gaming experience. Players would feel valued and engaged, while developers could benefit from ongoing sales. This model could redefine ownership in gaming!