- encryption wasn't really there (and still is experimental)
- decentralization does not exist to the degree that Matrix provides it
And Matrix is fundamentally different. It works somewhat similar to git compared to XMPP being more like IRC, which results in a completely different form of decentralization. E2EE is different as well - even if both are based on the Signal Protocol: Matrix encrypts for groups of people instead of single devices
I doubt Matrix would be where it is if they tried to bend XMPP
Not just using the same client for Facebook and your corporate chat instance?
Yes. You can find some lists of servers participating in the federation here: https://xmpp.org/getting-started/
It's just that XMPP providers are not required to participate in the federation. Sadly, large instances like WhatsApp choose not to.
Clients could encrypt messages using OpenPGP and the more recent OMEMO seems pretty reliable to me (Conversations, Gajim).
One new server + consumer app combo could revive XMPP for consumers quite easily.
I think your argumentation is flawed. If your server+consumer app combo can do that, do that