That's totally wrong. The reason d'etre of Scala is merging FP and OOP in a simple and elegant way. And actually there was no "fall" in rise-and-fall adoption of Scala. The adoption is growing.
I haven't really tried Kotlin yet, but my impression is that it improves a lot on Java without any real downsides. It might not have all the improvements that Groovy and Scala offer, but it has the most important ones.
And it's a clean slate that leaves some of the poorer decisions in Java behind it.
That's not quite how it seems for me. Groovy is faster than Scala in my hands (using CompileStatic) but its main challenge is complexity. It introduces a thousand quirks that have to be learned and then managed. There are some terrible legacy choices that can't be changed (eg: implicit coercion to Strings). I think this is behind the antipathy you see with people like Gradle users and Jenkins users that are incidentally exposed to it. But it applies also when you use it as a "replacement for Java". It has so many useful built in features but the price of that is all the implicit behavior of all of those need to be learned, along with actually learning Java really well, and with that along with less than perfect IDE support, and it's a steep steep curve.
Kotlin has good support only in IDEA and JetBrains said they wouldn't support other IDEs. They seem to make exactly the same mistake as Scala 2 did with supporting only one IDE initially (Eclipse).
Did Java not have seamless integration? I thought several IDEs (Eclipse, Netbeans and IntelliJ) were designed specifically around Java.