I have assiduously avoided any outward display of status in all areas of my life - you would never catch me displaying red soles, or using a handbag decorated with a designer mark or signature.
I have always regarded priority baggage labels as .......well, baggage labels, used by the airline to handle baggage correctly, the same as transfer tags and heavy tags. (No, I don't want to hear about HBO!
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In years gone by, when the carry on baggage allowance was higher in Club & First, check in agents would place premium cabin baggage tags on hand luggage, presumably to indicate to gate staff that they were entitled to bring on the extra bags.
I would love to see a return to this scenario, the labels being an indicator that the owners of these bags should not be asked to check hand baggage on connecting flights. Tags would only be placed on hand luggage within their allowance.