You're not wrong. But I do wish more people were happy with those "failures", which basically describe the Internet of yore.
Why would I want to build an audience on a platform with no monetization possibility, ever?
Even sponsorships are not possible, since I can't reliably count reads (which I can even in email).
It's nice to think of the "classic" internet, but it's a naivety that will keep RSS on the edges. And I love RSS idea! I want it back! I hate subscribing to email newsletters in a way that makes it hard to manage and organize.
But, yes, RSS was always pretty fringe. And today there's enough hope being dangled that a newsletter or YouTube channel will make it big that it's even more fringe.
I do it to hopefully help people out in life. I get enough traffic and thank you notes to make it worthwhile.