Many a good dish has been ruined with over the top Hot. I grew the worlds hottest pepper last year, can't remember the name but it wasn't PuckerButt or Ghost.
Small attractive pepper shaped similar to a Habenero.
One plant beared a lot of fruit.
When people talk about eating extreme hot, it is nothing more than bragging rights.
The pepper you grew was a Moruga Scorpion...a kicked up version of the Trinidad Scorpion (a former "hottest in the world" pepper).
I think your comment about bragging rights is dead on...and way off base. I feel you're right when you start talking about hot sauces that use extracts. That junk is nothing but heat, and I think it's stupid (for me).
When talking about real pepper sauce...made fresh with fresh veggies...it's about flavor and not bragging rights.
We have a batch of sauce we mixed up a couple of months ago that had close to a dozen different peppers in it. Some of those included chocolate habs, Trini Scorpions, red & yellow ghosts, and a plethera of other hots & super hots. The sauce itself isn't "blow your head off" by any means...but it IS packed with flavor and a great heat level.