OTOH maybe the majority of WP users are not blogging.
It's anecdotal but I know about a dozen WP users first-hand (and maintain a couple of those installations) and none of them use it for blogging. It's mostly for marketing websites and shops with WooCommerce.
Do they have a portfolio of work that gets updated as the work of the brand? That's a blog.
What about case studies?
Any ongoing activity that's add to the site in a "social update" sort of way is effectively the blog.
That's been WP original idenity. As you noted, that's not a priority any more. Now tools like Shopify, WebFlow, etc *in the eyes of the market* have parity. And while Matt went all in on Gutenberg / Blocks there were already a number of page builders. Blocks is not gaining traction. It was a *horrible* product rollout.
So what's WP's and Automattic's identity now? Extortionist?? Certainly looks that way. Ugly but true.
Yes, agreed WooComm is new. Nonetheless, social media'ing has replaced "I got a website" and "I got a blog."
In general, companies in this vertical are not really hurting.
https://getlatka.com/companies/automattic
https://www.wpzoom.com/blog/wordpress-statistics/
Data = good; facts = good
Truth: Belief drives behavior.
To go nuclear as MM did, what is he believing? What is his future like?
But you picked a good word: insane.
So yeah, we're on the same page. The difference is direction. Past v future.
Its not. Its used for everything from marketing websites to ecommerce. CNN, Reuters etc have their blogs run on it too.