The big problem with that one was that
- clients are wildly varying in quality. Mobile clients are quite good by now, desktop clients are rather meh, ugly, all over the place
- multi-device support sucks. You need message carbons (extension, 'solved'), but you also need MAM for history, which was a moving target and unsupported in most clients/servers last time I checked.
That ignores that you need a good number of other extensions to make XMPP mobile friendly (stream management being the minimum, as far as I can tell. Otherwise you WILL just lose messages). XMPP isn't exactly mobile friendly (chattiness, bandwidth) either, as far as I am aware.
In short: Yeah, I would love to agree that XMPP is the solution. Right now I'd say it would be at best ~similar~ to Telegram: A solution with some (different) trade-offs.