So, companies working on XMPP are healthy and thriving, but they can not afford to extend into the consumer space because... they don't want to go up against Discord?
makes business sense if you care about the longer term survival of your company
Then you make a separate entity to take risks in that space, kinda like what Amdocs did with Matrix?
I'm sorry, you can't have it both ways. Either XMPP consumer XMPP is in a dire situation because Element beat ahead of the others due to their VC funding, or businesses working on XMPP are not interested in the consumer space because they don't see it as worth the risk. But it makes no sense to claim that Matrix has achieved bigger mindshare with no actual merit in making a more accessible product, and that XMPP is acceptable as is.