If most people are thinking "whoopdedoo... you clearly have more money than sense" when they see your status symbol, is it still a status symbol?

Status symbols signal different status in different contexts. Some contexts (mostly lower middle class and below) are impressed by Rolex watches because they are expensive and the struggle for money forms a collective experience.

The old rich doesn't give a shit about Rolex watches beyond noticing the newb rich using them to tell on themselves.

It depends, if someone fundamentally believes that having more money than someone else means that person is of higher status, then it is.

If people don't consider that someone with more money is of a higher status then symbols of that wealth aren't meaningful.

I think a lot of people have an ingrained belief that "more money == more status"