Why is fame so alluring to so many?

Because it is a good way of getting what you want.

Fame, like power, is an aphrodisiac.

Fame provides an illusion of one's meaningfulness. Even the most vapid
celebrities probably feel that their lives have meaning, in the grand
scope of things. Few of us like the notion of living and dying without
making an impact, and being famous (or even infamous) guarantees that
one's presence is noted.

Sir Laurence Olivier, one of the greatest actors of modern times, was
once asked by Dustin Hoffman (another great actor) about the
motivating force that causes people to become actors. Olivier summed
it up quite simply: "Look at me! Look at me! Look at me!"

But why are people so attracted to the feeling of being around or
knoeing famous people (whether they admit it or not)?

Basking in the reflected glory of the great.
"Shake the hand that shook the hand of the man who shook the hand of
John L. Sullivan."
It makes them feel just a little bit more important if they can be
seen with someone famous or name drop about having met the person.

It's the place where my prediction from the sixties finally came true:
"In the future everyone will be famous for fifteen minutes." I'm bored
with that line. I never use it anymore. My new line is, "In fifteen
minutes everybody will be famous."
    Andy Warhol, Andy Warhol's Exposures (1979) "Studio 54"

While fame my indeed be an "aphrodisiac" for a few people, I don't
think this is universally true for the majority of people who seek it.

For those whose cup is only half full fame is synonymous with wealth,
success and validation. In others, whose cup is half empty, fame is a
euphemism for the fear of failure, poverty and obscurity. It?s as
simple as that.

How?s does that explanation work for you?

Tutuzdad-ga

@Tutuzdad

That is pretty astute, overcompensation for insecurity.