Ok this is starting to get hilarious in how naive you are. Have you looked at the messenger space at all? There are literally hundreds of venture-capital funded grifters competing in that space and Element is only one of them. And they are all playing a losing game these days, as they are up against giants like Discord (and to a lesser extend incumbents like Microsoft, with their Teams).

That the established XMPP players chose not to be part of this grift is a very sensible choice that also makes business sense if you care about the longer term survival of your company. Most of their income is from embedded and IoT applications these days, like running the notification infrastructure of giants like Nintendo. However, this sadly does not fund client development and improvements in user interface. The only sustainable funding for that was from open-source organisations and government agencies, which Element decided to persue aggressively. None of the established XMPP players felt like getting in on that race to the bottom as they didn't have (and want) venture capital to burn. But now that Element has started to run out of funding they are turning to the "switch" part of the bait & switch grift and the ones really hurt by this is not XMPP, but all the organisations that naively trusted them with their communication infrastructure.