Ya, I don't get the appeal of this. As just about everyone else has pointed out the NBA is obviously trying to emulate what exists in soccer, but the reasons why it works in soccer really can't be replicated in the traditional NA sports leagues given how they developed and are currently structured.
I guess they can try to make the players value it buy putting up a ton of prize money, but given that the average salary in the NBA is already approaching $10 million, it's going to take a whole lot of prize money. I dunno, maybe if they stick with it long enough it will grow into something meaningful, but I'm having pretty much a impossible time picturing it.
And yes, any type of trophy presentation or banner raising is going to be pretty awkward... And widely mocked. Getting Nashville "Regular Season Conference Champions" banner vibes.