Of all things, why does the Entity make hooks a major role in the trials? What do hooks resemble?
I think it's to generate more hope in the survivors.
In the same way a survivor can be hooked, they can also be unhooked. It seems to me that the hook system resembles second chances. The survivors can still be rescued and recover from a hook. So even while they're on the hook and suffering, they may have hope of getting saved.
Apparently, the hooks were inspired by a scene in the original Texas Chainsaw Massacre where Leatherface hangs a girl on a meat hook. In terms of lore however, I have no idea, but I believe ImmersedNurse might be onto something.
It generates that the survivors are just meat to the entity and killers.
The Entity is a fish, and it likes its sacrifices to be served on hooks.
Honestly, I think the hooks are just a gameplay mechanic, and lore-wise they have a similar role; if you got moried on your first down you would lose hope.
The hooks resemble hope. They can lose there prey and be dismantled. But the entity knows this. The real question is WHY SO MANY HOOKS?!
It's the entity's fangs, that grow around the survivor. Being hooked is the same as being at the jaws of oblivion as they close shut on you. Either be unhooked or be swallowed by darkness.