Of course, like any good conspiracy, it's very competent and expansive, managing to simultaneously secretly convince all the major distros to use it by default and cruelly suppressing any efforts to provide funding and engineering effort towards X11.
In reality, Wayland works great for most Linux desktop users (on the mainstream distros) and no-one is funding X because no-one wants to.
Actually, because it's ready and it works. And yes, most distributions use Xorg by default and all attempts to switch to Wayland fail, ex. Ubuntu. (maybe GNOME is an exception, but it's probably the only DE where Wayland somehow works).
This is just false. Wayland's the default in Ubuntu, Fedora, Debian (how many users is that?) etc. And it works just fine out of the box on Gnome and KDE/Plasma, the two big DEs.
Also no Wayland does not work great for most Linux desktop users. Even not in reality. It works incredibly well at making the life for application developers extra hard though.