It is irrelevant whether it's an honor, but as to whether it gives you insight, you are generally right but you did miss an important point:
The vast majority of people who are "members" of a given hiring committee often don't show up every week. A lot, in fact, show up never, but are still members. (for example, they were part of it years ago and nobody removed them, they got asked, said yes, never actually did anything, etc)
So while you are correct that it does give you some insight if you actively participated, simply being a "member" of a hiring committee is a necessary but not sufficient condition to say that you have that insight.
Lies of omission and all that.
In this case, I'm stating that I was a hiring committee member and not saying that I attended regularly, when I in fact did. This is not a lie of omission. At worst, you could accuse me of not offering additional qualifications.
But, yes, I could have been more extensive in my credentials. Unfortunately, "How to Crack the Toughest Coding Interviews by ex-Google engineer, ex-Google hiring committee member who showed up every week, ex-Apple dev, ex-Microsoft dev, author of Cracking the Coding Interview, and author of The Google Resume" was a bit too long :).
I expect the "newer" offices (relatively, of course) may not have this issue.