Interesting. While I’ve not run into a need for this myself, I can imagine certain use cases where it could be handy. I’ve often found myself dragging links to the sidebar though trying to put a link inside a folder.
I can think of one huge advantage of having a context menu inside the note to treat links as actual files- renaming!
Presently, Obsidian automatically updates links in all notes when a note is renamed. This is very useful and a great feature. However, if you accidentally change a link to that note instead of renaming the note, this change doesn’t propagate to the original note and the other places where this link is used. This is good by design since you could be referring to something else totally and it doesn’t make sense to rename a file by renaming its link. BUT if you could right click on a link and it gives you option to rename the file, it becomes clear that the actual file is being renamed and not the link. This could allow quicker renaming without finding/opening the actual note.