Does the "extent of reaction" have a physical meaning?
The stoichiometric coefficients $\nu_i$ are arbitrary anyway; the only thing that matters is the ratio of them. $\ce{3A -&gt; 2B}$ and $\ce{6A -&gt; 4B}$ both describe the same physical process occurring (unless it is implying something about mechanisms, but in this context of thermodynamics, that's not the case). Clearly, even for a single unchanging system, its value of $\xi$ will vary depending on how you define the stoichiometric coefficients. So, I wouldn't expect $\xi$ to have any physical meaning. Personally (in my limited knowledge of thermodynamics) I just view it as a useful, but ultimately arbitrary, definition.

[In the same vein, I would say that the magnitude of the equilibrium constant $K$ doesn't have any physical meaning either, since it also depends on how you define the stoichiometric coefficients. But I digress.]