It’s not pointless if you work in a trade, I used to hang paint brushes on them sometimes, but yeah, I don’t really wear them except a few times in the past I had manual labor jobs before I finished college.
I took carpentry in high school, and the school issued me a tool belt & tools. I’m left handed, so I wore my hammer on the left side, and the bottom of the handle would catch in that loop and that would keep it parallel with my thigh, it didn’t bang around. It actually worked out fairly well; if I were to start wearing a full tool belt with a hammer again I might go back to carpenter jeans if they even still make them.
But, most people are right handed and wear their hammers on the right, and having tried it I can say hanging a hammer straight from that loop; it’ll bash your knee out. It’s too low.
You can still get carpenter jeans if you need them, actually they are most commonly sold at industrial painting retailers. They are usually white because someone thought it was a good idea to make painters jeans white, lol.