I have the title to my car in paper. If someone steals the title and forges my signature i can notify the police and the BMV and they can work to find the thief and provide me with a new title while i continue to drive my car since the thief didn't steal my physical keys or the car itself. If i had the title as an NFT and my wallet was hacked, the thief would outright own my car, and I could possibly be locked out of my car depending on how integrated the NFT was with the vehicle.

Ownership can only be determined by force. Either i am stronger than you so what's yours is now mine, or a central authority uses force to make sure I can't just take your stuff. NFT' transferred that authority from (albeit poorly) regulated officals to a wild west hellscape of maleficent actors.