If you look at old games, the reason they didn't need this was because they couldn't have nearly as many props in a scene. I like to use classic WoW as an example. It didn't have any kind of highlighting for objects to interact with, but you didn't need it because there just weren't that many objects period.

Highlighting interactables, whether it be through a pulse like the meme, or just based on proximity, is a compromise in modern games to make things playable while also having dense, prop-filled environments. The infamous white or yellow paint for climbing surfaces is another example.

I doubt many designers love these solutions, but they're currently the best we've got. It's not an easy problem to solve, but I hope a more immersive solution comes along someday. In the meantime, having it is better than not, I totally agree with you.