Yeah i think the RPi and clones helped a great deal there.
For 4 euro's and less you can buy a board with the ESP8266 and you can even use the Arduino IDE to program it.
And yes, I think the squabble left people a bit unsure about Arduino and then they discovered that there's ... the confusing mess that is mBed :-)
Of course the implicit assumption here is that people will get breakout boards like NodeMCU.
But for a lot uses they are a better fit. The ESP8266 is a right time and right place kind of thing - it has enough IO and wifi to be really useful for the hobby explosion of IoT stuff.