I disagree on this specific one. It’s not an incredibly esoteric concept and is part of every legal dispute involving ownership of anything. It’s legalese for “they don’t own it, I own it”.

I entirely agree with your main point.

Aside from that, the concept of “superior ownership” isn’t something made up any time recently. It’s the notion that there are different types of ownership and some of them take priority over others.
For example, if I have a watch, A steals the watch from me and sells it to you, and then B steals the watch from you, you, me and B all have a claim to it.
B possesses the watch so you need to prove they stole it to show you have a superior claim to ownership. You can show that you bought the watch fair and square from A, which means it looks like your claim is valid, but because it was stolen from me in the first place I have the best claim.

It’s not a rich person making up a new legal principle, it’s a rich person trying to use their money and lawyers to buy an outcome because they don’t like one of the parties.

Ha! I didn’t see that at first. I love “fuck you so hard that we can and will put a significant dollar value on it being more humiliating”.

The assets were auctioned off to pay his debt to the families of the Sandy Hook shooting.
So effectively they gave money to the families of children killed in a school shooting that he slandered in cruel and vile ways.

Given that the families pretty reasonably dislike him, the added bonus of his creation being used to openly mock him and promote a message they endorse is quality icing on the cake.