Users don’t care about federation. For them, there is no such category as “federated chat”. There is only “chat”.
XMPP never had significant market share among the instant messengers of the time (except maybe as custom solutions for work chat, but not as a consumer service).
The state before Google was “up and coming solution for federated chat”
The state after Google was “impractical solution that does not federate¹ properly, and is hard to set up²”.
Those are not the same.
1: because of Google.
2: because of Google.
Users don’t care about federation. For them, there is no such category as “federated chat”. There is only “chat”.
XMPP never had significant market share among the instant messengers of the time (except maybe as custom solutions for work chat, but not as a consumer service).