I would have thought that the real competition was the ESP32. It stays in the microcontroller space (no OS to manage, should stay lower power, etc.), dirt cheap, ships with wifi+bluetooth.
I don't see any purpose of Arduino outside education for kids. Makers should use cheaper products/knockoffs at worse.
That said, it does come with a lot of SRAM and the wifi/bt connectivity is obviously great.
There are actually hacky ways to work around that using DMA but yeah. Software PWM sucks.
Either way, the ESP's are an incredible value (I use both).