PG knows more than I do, and what he says rings true to me.
Playing baseball at the next level is firstly (though not exclusively) about tools. High school stats, plays, and accolades matter little or not at all.
I have one son who throws 90+ mph. Throwing velocity is a tool. He hasn't homered since he was 12. He's a D1 player. His team had 5 players hit home runs this year on a 35 man roster.
I have another son who runs the 60 in <6.7 seconds. Running speed is a tool. He hasn't homered since freshman year of high school. But he will play at a D3. His future college team had 5 players hit a home run this year out of a 32 man roster.
College coaches, pro scouts, talent evaluators (like PG), et.al., will assess a player's tools and using their experience will assess a player's ability to compete at the next level. Do they envision a player competing in college or professionally?
Parents (me included) and players often look at stats, accolades, or the outcomes of individual plays and wonder or conclude that the player can play or won't play at the next level. It really has nothing to do with that.
Presuming the question is about whether home runs matter for all or even most players to get to the "next" level. The answer is no to play at some level in college. The answer is no for pitchers. The answer is probably yes for most professional and top tier D1 position players. As PG states, power is a tool and "is heavily considered by most every evaluator".