You are correct, many investors don't realize that Ripple and XRP are two different entities. However, I do disagree with you in regards to XRP being overpriced. Right now Ripple is in process of getting banks to utilize their software. Banks may utilize Ripple's software and opt to never use XRP (Ripple's cross-border cryptocurrency) However, banks that decide to use XRP will be able to complete inter-country fiat transfers in 4 seconds. If banks decide to use another inter-country payment type they will lose some of the speed XRP provides. Next, while XRP is considerably larger in total units circulating when compared to Bitcoin or Ethereum this is so because Ripple is not promoting this coin to individual investors but rather to banks. Banks across the world move trillions of dollars among their facilities in any given year. If banks decide to adopt XRP as their inter-country transfer method 100 billion XRP will be needed. The below link shows total dollar figures for money movement just in the US (Fed Reserve).

https://www.federalreserve.gov/paymentsystems/fedfunds_ann.htm

Also, everyone seems to indicate that banks will not adopt the use of XRP. Once Ripple hooks banks with their block-chain technology their secondary push (besides speed) will be the cost savings associated with using XRP. Ripple will be able to effectively lower bank remittance cost by 60%. See below link.

https://ripple.com/insights/ripple-and-xrp-can-cut-banks-global-settlement-costs-up-to-60-percent/

Also, the link below signals and proves that banks are willing to try XRP (speed and cost reduction). Cuallix, and national bank in Mexico, is the first to utilize XRP as a way to save money for inter-country transfers.

https://www.cnbc.com/2017/10/10/ripple-has-over-100-clients-as-mainstream-finance-warms-to-blockchain.html

It's still not to early to consider investing in XRP. It's definitely a long term hold (7-10 years), but IMO it will make many people rich.