What on earth are people talking about in here? Being recognized as the best player in the world has always, and will always be hugely important and prestigious, even more so in a team setting because of the sheer recognition above and beyond peers. Individual sports are de facto, binary; you either are or aren't by pts or trophy tally.
One might say Di Stefano centralised the prestige, if not Matthews - where one player became the bar for everyone else to aspire to and attempt to surpass, and we know of many of the true greats through their prestige as individuals first, and their outstanding performances and contributions to their teams then go without saying.
I bet, if you know anything about great players of the past, you could do a very good job of painting the tapestry of BPITW winners without even trying the reason you can do that is because of the prestige their presence at the very top afforded them - name that now precedes them and is mostly indelible.
Don't confuse growing pains of these things becoming all inclusive to them not carrying weight. Maradona was the man, Platini before him, it's foolish to think such a thing shouldn't be acknowledged. It's always been a great source of pride for the winners and inspirational for those with the talent to be in the running for it.
The idea it should be glossed over because of the team setting is absurd. Which team sport does not acknowledge its greatest players? To become peerless is human nature and a default pursuit for the competitive on a personal level.
Madrid and their pathetic reaction shouldn't be conflated with why the award is aspirational and prestigious.