Rust has modern tooling, great IDE support and a language server, nice dependency management, cargo and I could go on. Writing rust makes it imo much easier to structure your code and project as well.
I just recently had to build a medium sized C project. The Makefile alone was at least 700 lines long. In my opinion I also just don't see younger people and newcomers putting up with that when there's a shiny new alternative. And if you want to sustain you have to attract new people and potential maintainers.
Other than that, I agree that the rewriting is mostly not warranted. The thing is, it is about people and not really about code or programming language. If your entire team knows C well and will be able to maintain that project for years to come, it'd be weird to rewrite it all.