Why not? At their core, only stable tokens should remain in their current form (ERC20/BEP20/TRC20/etc.), so to speak, be impersonal. The remaining tokens may already bear traces of individuality and have additional functions. An apt analogy here is the evolution of the landline phone to the smartphone. Another thing to note is the Smart Layer Network with its Smart Cats (ERC-5169 + xNFT). And therefore, a unified standard for such token-NFTs should be developed.
Encouraging innovation is good but onboarding it via the proper processes is also important. That's why I feel it might pose a risk on etheruem ecosystem atm but once audited and given the nod, I would explore it and also consider buying pandora.
Of course, this is how it should be. For now, the ERC-404 standard is unofficial. In addition, there is an opinion that contracts using ERC-404 (including Pandora) may contain a vulnerability due to which the owners of tokens (parts of the NFT) can “steal” the original NFT.