They're sacrificing the utility of the tool to make it part of their new AI-driven operating system as a service platform. The only thing notepad had going for it was its complete simplicity, reliability, and speed. Nobody wants notepad to try to rope you into this ecosystem, certainly not at the expense of those qualities.
Even with the recent updates, I'm over it. Notepad has crashed on me at least twice. Notepad. Crashed. There is no longer any reason to use it.