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Not sure about _everything_ but it is already in use for notifications on Nintendo Switch, Fortnite group chats, WhatsApp... Of course, none of these are federated or mention XMPP anywhere, but it tells something about the intrinsic qualities of the tech IMHO.

https://xmpp.org/uses/instant-messaging/

https://xmpp.org/uses/gaming/

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WhatsApp will be forced to federate as a designated gatekeeper under the DMA by the EU. XMPP could be an obvious choice to them since they already use it internally.

They use private custom extensions that makes it non-trivial to federate with XMPP unfortunately. I haven't followed closely what's happening with this DMA but I wouldn't get my hopes up about XMPP being chosen for anything, sadly.

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