There was and technically still is Omnivore (https://github.com/omnivore-app/omnivore), but it got aquired by ElevenLabs last year and the official instance got shut down. Shiori (https://github.com/go-shiori/shiori) also comes to mind, but I think that's about it.
As for closed source solutions, I'd say Readwise Reader (https://readwise.io/read) actually innovated a little bit for the first time in over a decade by catering to power users, but I didn't use it often enough to justify a perpetual $10/month subscription (no free tier what so ever).
Nowadays I just use Obsidian's web clipper.
All I'd really want to do to that design is lay off the drop shadows
From my experience it had the exact same behavior as the "Reading mode" feature from browsers. Which was not great overall.
No clue if there is something better than that though.