I always interpreted Godwin's law to be about maximalist claims. Unfortunately calling someone in a nazi in 2023 isn't as insulting as calling someone a nazi in 1990. I'd guess the reason you don't see it as much is because it's not as strong a word anymore, thanks to, you know, actual nazis trying to make a comeback.

In that sense the update wouldn't be "here's another thing I see all the time" but "here is the absolute maximalist claim I can make about a person's character."