Their strength was the ability to keep at the very fast moving AI frontier.
When a new model is released they have been able to have a working implementation days later, not months when the model was redundant.
And often it's much more usable than the one-off, unmaintained, research code written in a very fragile environment.
BLOOM was a decent fully open and very large model for its time, and a huge coordination effort. It was around the same time as another "joke", OPT, but that gave Meta the knowledge that let them build Llama.
Huggingface didn't have the money to compete in that race, but I'd bet it helped them stay at the frontier of AI software.
Google could have owned this space; they had TensorFlow hub, but it was too hard to use and too locked down. Huggingface made it easy to run and train transformers, and got the timing just right.
I'm glad someone is trying to build truly open models (along with the great work at Allen AI), because the likes of Meta and Alibaba are only going to release weights as long as it suits their business.