This reads like a rhetorical question – 'what could possibly be the application for something this deliberately bad?'
I won't speak for what "blockchain" can or will become, but you might see the hype more clearly by considering the ideology inherent in asking specifically for the "proper application." You imply that you or someone in a position you understand might "apply blockchain" to a "problem," as you commonly understand it.
I see "blockchain" more as a movement, which completely evades "application" in the common sense. People building these technologies, and organizations around them, live in a separate world that makes little reference to the broader world of which most of us are a part. They start with distinct priors, which rule out most existing solutions on the grounds that they demand political centralization (see: https://medium.com/@VitalikButerin/the-meaning-of-decentrali...).
You can summarize this ideology as: 'if there's a sysadmin, the system is broken.'
It may very well be the case that they are creating a new world that will be marginalized and outcompeted by incumbent systems and organizations, but that's how I understand what's 'actually going on'.