Very much this. The allure of raspberry pis was that they were $30 toys that could actually be used to do things that were equivalent to much more expensive computers and computer control systems.
Somewhere along the way they lost the plot, probably when supply chain issues drove their prices sky high along with the compute modules being used for home lab servers, and now cheap knockoffs based off of Rockville chips or ESP32 are just as capable as raspberry pis for a fraction of the cost, and at the same time actual desktop computers in miniature form factor have become so cheap on the second hand market that they are incredibly competitive with the raspberry pi.
Don't get me wrong, pi is a great platform. But the use cases in which it leads the pack have become incredibly narrow.
Actually I can't think of anything that raspberry pi does that can't be done better by a less expensive alternative.
Even the pi5 with the nvme hat is not currently price competitive with a 4-year-old HP ultra small form factor as far as I know.