Rolex doesn't claim to be fine watch-making, they're tool watches. If you see their marketing, they're targeting sports and exploration now.
https://www.rolex.com/world-of-rolex.html
Their dress line such as Datejust and Day-Date are also very successful (just not with the hypebeasts). You're right that they are not haute horology, but Rolex doesn't claim to be.
They just have been a symbol of success for so long that they got picked by many, including the hypebeasts who just want to show off. In the same way PP doesn't market to hypebeasts, but the Nautilus is kind of falling victim to becoming the new hypebeast watch, along with AP's Royal Oak.
That said, it's important not to overlook how important Rolex has been in putting Swiss watchmaking on the map. Yes, they are not the fine watch-making, but they are the gateway brand that introduces many collectors into the world of Swiss watches.