When rates increase from 1% to 3%, the present value of a very long stream of future cashflows drops by a factor of three, which is not small. But you're right, it pales compared to the uncertainty embedded in the "1000x".
One of the fatal flaws of this kind of capitalism is that the only quantitative central management mechanism--lawmaking is central but qualitative, which wouldn't be a problem, except that we're in a state where the laws are written by rich people for the benefit of other rich people, so the qualitative nature of it enables willful obfuscation--is to vary the interest rate. If you lower it, you're giving connected people disproportionately more money; if you increase it, you're causing a capital strike. Either way, it's bad for the 99%.