You are in fact correct. Where the benefit comes in for holders...

You are in fact correct.
Where the benefit comes in for holders of precious metals is in its capacity to hold value, especially when measured in terms of fiat. The US$ will devalue!
Let us say, for example, someone is in debt for 100k as measured in today's fiat dollars. I would hope you agree that with the vast amount of money printing, eventually there will be a devaluation in currency. It will happen sooner or later even if in the short term we see devaluation in the cost of some goods, however the final result will be inflationary. A good example of this would be Venezuela and the the market for anything which is priced in Bolivars. Such as would be the case with a country like the USA where "money printer go brrrr."
Now consider the holder of precious metals who has a debt in Bolivar fiat. At one stage the aforementioned 100k would have been a burden. Today it could be paid off with a couple of ounces of silver.

So I say that you are in fact correct. The point you are missing, is the chance to pay off outstanding debts as measured in today's fiat , for next to nothing in the future. As fiat degrades and devalues then the owners of precious metals benefit accordingly. SO for us it is a matter of hold and wait.

Imagine paying off a mortgage for a couple of ounces of gold or buying an income producing asset that initially only cost us a small amount when we bought it.

I believe "Gold Bugs" as you call us, have a great deal more foresight than you give us credit for !