This is an empirical dispute; we can look at what happens when high-status people display low-status flowers. On the first account, we would expect the status of the people to go down (that is, third-party observers would think less well of them, keeping all other factors fixed). On the second account, we would expect the status of the flowers to go up.
It can be even more complicated than that (previously mentioned on Lesswrong here).
It can be even more complicated than that (previously mentioned on Lesswrong here).
Yup. As I said, my own expectation is that it depends on several other factors.