I think people seriously underestimate how much of a struggle driving down the cost of compute/$ is going to be. Every incremental gain in memory and microprocessors is getting exponentially more expensive to develop. This is also a (relatively) high interest rate environment which do not tend to favour long term speculative investments. A lot of people aren't fully aware of how OpenAI and GitHub CoPilot are bleeding red ink from the get-go.
I honestly feel like people are really sleeping on the potential still. Most people I know tried it a few times around last Christmas and got bored with it and quit but I never stopped using it.