My guess is that they began to restrict ChatGPT because they can't sell that. They probably want to sell you CodeGPT or other products in the future so why would they give that away for free? ChatGPT is just a teaser.
This is my experience also. I have not formally benchmarked the different releases, but specifically for Python coding ChatGPT 4 got considerably worse with the latest updates.
The fact that rumors about GPT-5 were quickly suppressed and the models were dumbed down even more cannot be entirely explained by excessive demand. I think it's more likely that GPT-3.5 and GPT-4 demonstrated unexpected capabilities in the hands of the public leading to a pull back. Moreover, Sam Altman's behaviors changed dramatically between the initial release and a few weeks afterward -- the extreme optimism of a CEO followed by a more subdued, even cowed, demeanor despite strong enthusiasm from end-users.
OpenAI cannot do anything without Microsoft's data center resources, and Microsoft is a critical defense contractor.
Anyway, personally, I'm with the crowd that thinks we're about to see a Cambrian explosion of domain-specific expert AIs. I suspect that OpenAI/Microsoft/Gov is still trying to figure out how much to nerf the capability of GPT-3.5 to tutor smaller models (see "Textbooks are all you need") and that's why the API is trash.
The current versions is close to the original 3.5 version, while 3.5 has become horribly bad, such a scam to not disclose what's going on, especially for a paid service.
the one from a MS researchers that has been recommended to all of us probably. Good video btw.