Mastodon's real problem is that it doesn't have sex appeal. It's not a Game of Thrones celebrity throwdown like Twitter, and it lacks the marketing of successful viral platforms like TikTok or Instagram. It was a conscious decision too - calling posts toots and designing the entire network to be distributed - making it less social was part of making it more healthy. Even now, Mastodon maintainers waffle at the idea of making the platform more Twitter-like because it dilutes the balance the platform has cultivated over the past few years.
It's like saying that Discord doesn't face any threat from IRC. You might be right from a financial perspective, but the communities around them are completely different things. It's an apples-to-oranges comparison.
If you present people with a list of 30 email providers they've never heard of before, it's going to throw them for a loop.
https://www.google.com/search?q=why+is+gmail+blocking+my+ema...