That's your example? A sword in a video game? Honestly though, I guess it makes sense, because NFTs are arse for anything that has actual real life meaning. Even you, yourself, realised that halfway through your post. Yeah, no shit your degree is worthless if the university says it's worthless.
So, on to video games. You think it would work that way huh? Your sword would still be worth something if Blizzard revoked it because you "own" it? You are making the mistake of thinking that whatever game you want to use the sword in wouldn't check with Blizzard to find out if you are a douchebag who has been banned or not, before they allowed you to use the sword for something in their game. They'd check, see that Blizzard has no record of it on their database, then decide that you'd either been banned or had stolen it, then block you.
So, on to video games. You think it would work that way huh? Your sword would still be worth something if Blizzard revoked it because you "own" it? You are making the mistake of thinking that whatever game you want to use the sword in wouldn't check with Blizzard to find out if you are a douchebag who has been banned or not, before they allowed you to use the sword for something in their game. They'd check, see that Blizzard has no record of it on their database, then decide that you'd either been banned or had stolen it, then block you.
Btw: Even this won't happen. Read what an actual game developer says about it. https://docseuss.medium.com/look-what-you-made-me-do-a-lot-o...