It is in my opinion a 2 tier system.

For us plebs we get a warm glow when we see selfless folk who do charity work etc getting an MBE etc. That is level 1 & gives it a kind of justification. I approve of that even if it also helps the Royals justify living off us.

Level 2 is gongs for the boys. In the real world just doing your job doesn't equal an honour, you just get to keep your job & be taxed to hell and back. But if you are a lovie or a civil servant your get an honour. Mutley approves by the way.
The Lords is now of course level 3 jobs for the boys now the sinecures in the EU aren't there.

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JohnV6
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