Makes no sense to me. You take a loan to buy something you cannot otherwise afford, then you pay back the loan. Bank wants % on the loan, this is legal, therefore you pay back more than you borrowed. The amount gets split into two buckest, "interest" and "principal", presumably because of size and length of the loan, but arguably mostly to let the bank do various shenanigans that lead to them making more money on it.

Nothing in this gives any good reason for one to expect homes to appreciate in value, other than that some buyers want it to, and I haven't heard any good reason why those buyers shouldn't just be told, "no". If these people then decide not to get mortgages, due to it not being an investment, then all the better for everyone else, who want a home to live in.