Larian tried to implement them and found that they didn't add enough.
The more the game reacts to what your character does the less important these check boxes take.
Sorry, but that’s not what Swen said. Unless you’re referring to something other than the latest video, at 1:24:30?
https://m.youtube.com/watch?v=qboLvZ5YQSgHe says that the writers were having problems coming up with dialogue as they wanted to know the details of the background. He doesn’t say anything about it not adding enough.
If you get involved in a heist your criminal background will give you proficiency in Perception, Stealth and Thieve's tools.
That's a significant advantage over a Noble's History and Persuasion.
Sure, but there are other ways to get these buffs. They aren’t unique or particularly interesting. You could make noble who is sneaky and proficient with thieves tools (I believe Asterion a posh rogue for example?). Whereas if you have some previous history with the criminal underworld, the perps you work with could have confidence that you can get the job done, that they wouldn’t have with a noble they don’t know.
Mechanically, it might work just by having significant modifiers to any reputation or attitude system, but a few specific lines of unique dialogue with specific NPCs who acknowledge your (undefined) history would help sell that idea, IMO.
This could also work against you sometimes of course. Maybe there’s a city guard who recognizes you and is immediately suspicious? Maybe a trader you need to get a key item from flat out refuses to have anything to do with you? You may need to rethink your approach to a particular situation.
The vaguer they make them the more insignificant they become.
To each their own I suppose but IMHO Backgrounds are a great story hook to tie your character to your DM's world. They are personally tailored to your character and give your DM ways to personalize their adventures.
When they are generic they just don't add anything significant.
This is the main thing I disagree with. I think the specific details of your backstory can be completely separated from any opportunities for interesting situations that a background can give.
On one hand, they could write a whole bunch of dialogue where NPCs talk at length about you specific past deeds, but it makes no difference to anything that happens or that you do. On the other, they could lead to interesting situations and different options without anybody ever remarking on what you actually did in the past.
Two more examples:
Say during a quest you decide to turn a criminal in to the law. For most people turning in a crook would be pretty normal and expected behavior. But if you’re also known to be a criminal you are now a snitch. As everyone knows “snitches get stitches”, so that could lead to interesting consequences.
What if a poor peasant invites your folk hero character into their home and you take advantage of the opportunity to rob them of their meager possessions? That might be seen as much worse than some random theft. It would be a betrayal, and you could well find yourself facing an angry mob.
I honestly think that they could make the effects on the game as simple or as complicated as they like, without ever going into detail about a specific backstory. Anything from just a couple of line of dialogue to acknowledge your background, to unique and very involved situations and choices.
None of that is to say that should do it, however. I fully respect that it would mean more work and Larian have their own list of priorities. All I’m saying is that in principle they could if they want to, and I don’t think that lacking details on exactly what your character did in the past needs to be an obstacle.