Like you said, 99.9 % of people wouldn’t recognize a Patek Philippe if it hit them upside the head. By definition it’s not ostentatious. Rolexes are ostentatious (it’s the only luxury brand most people know), but also incredibly cheap as far as mechanical watches go.
A Patek Philippe is a status symbol, but only to those very select few already in-the-know. And that is not mutually exclusive with those movements being incredible art. Is a Van Gogh ugly or evil just because some asshole bought the painting for $100.000.000? Art doesn’t have to be collateral damage to your class consciousness just because rich people have more access to it.
Your sleep paralysis demon should send their resume to a few Hollywood producers if they ever get bored of only traumatizing one human at a time. A+ storytelling.