I only think they look good on a handful of cars (mostly Subis), and I would really only like them in the game for car show roleplay.
This might be something you are looking for.. https://www.beamng.com/resources/d-troxx-stretched-tyre-add-on.5623/
losing grip can be part of it. some drift cars run stretched tyres for this case. whether it looks bad or good is entirely your own opinion, though it is currently quite relevant in the modern car scene.
It would be even less of a reason to use it on drift cars. Drift cars want to lose traction by inertia or raw power. You absolutely do not want to not have grip when you want it in a drift car. More grip means more control.
for "lower-end" drift cars i should say. not everyone has enough money to put enough power to break their tyres loose easily.
Another use for stretched tyres is if you want to slide a FWD car...not exactly "drifting" in the contemporary sense. Possibly another reason is you want to pay less for tyres so you get skinner rubber and fit it to your car.
The stanced wheels for the 1996-2000 Pessima have such tires. You could always try those on other cars and see how they look. As for the practicality of stretched tires, there's quite a few better solutions for drift cars, etc. than using tires that are stretched to the point of having little to no grip. It's pretty much just a visual thing IMO, and a dangerous one if used on public roads. You've got all the inertia of a wide wheel, and the small contact patch of a narrow wheel. It's literally the worst of both worlds.