It is smaller than high school campus nearest my house, is not a UN member, and seems to exist solely as a tax haven.
It also has no native citizens. No person has been born in Vatican City in a century and even if you pop out a baby in Vatican City and are you yourself a Vatican City resident and citizen, the baby is not a citizen until made so by legal decree, citizenship which ends the second your employment ends, of course, because citizenship is tied to employment.
It doesn't make sense.
It isn't a country.
It is a tax dodge.
My perspective may be skewed. I value "quirky quirks of quirktastic history" very little.