This is, like you say, a case of group psychology, but based on economic arguments.
That may be a prevailing view but there's no empirical evidence in support of it, so I'm skeptical and treat it as conjecture.
I find it hard to replace "cryptocurrency" if we must explain something that complicated like "proof of burn".
That's where my marketing and social psychology background gives me a different view, allowing me to respond - What, like they have to explain the changes in suspension, steering and engine management parameters that lie behind pressing the Sport button that you see on many modern cars? Who says we must explain proof of burn to people who don't want to know?
Cheers
Graham