Cats were useful, so were dogs.
Now they're both mostly just for being cute.
Dogs are generally better companions, but lots of people have dog-like cats that wanna be around them 24-7.
I guess it depends on how you define "better". We have cats who snuggle with us in bed at night, but mostly do their own thing during the day, aside from little spurts here and there where they'd like (but don't demand) some attention.
Meanwhile, most of my friends' dogs annoy the hell out of me. No, I don't want you to jump on me and slobber all over my face every time I see you. And most of my dog-parent friends agree that their dog requires a lot more attention and work than our cats do.
To each their own, I suppose.
We have a number in the house and they enjoy each other's company.
Your rebuttal is also wrong, since cats do make decisions for the good of their colony.
They're not. Feral cats form colonies with complex social structures: https://en.wikipedia.org/wiki/Feral_cat#Colonies
House cats are much more solitary creatures that are very jealous of their human slaves' relationships.
Rodents are extremely social, like people levels of social.
Not sure what point you're trying to make here.
Also, I wonder if it is really evolutionary if most of their current traits (physical and otherwise) were selected by humans.
Now excuse me, I must withdraw to tend to my feline masters.