It was also born in the web's early document-centric era where every action requires a full loop-back to the server and entire page reload, which is why it will never be used to create engaging and interactive apps.
The ideal use-case for HATEOS would've been to power native mobile apps since they can be difficult to update, but even then it's relatively non-existent with most mobile app developers realizing it provides worse end-user UX that takes more effort to achieve.
Basically 10+ years on and it's still only being used in academic circles where the few that are trying to implement it, are doing it to achieve full-REST compliance, and not anything to do with choosing the best tool for the job or trying to create the best end-user UX.
I've written an earlier post why HATEOS and Custom Media Types are often poor choices, generally requiring more effort and producing less valuable results: http://www.servicestack.net/mythz_blog/?p=665