I used Hangouts including the dogfood versions internally at Google. Problem was it was too complicated because it was designed by Googlers for Googlers. So it supported desktop and mobile, work email and personal email and phone numbers, text and video, and so on. In short, every single complexity conceivable was crammed into the app.
Whereas Whatsapp was simple - only phone numbers to sign up, only text and images, only mobile phones. That simplicity meant my parents could onboard smoothly and operate it without having to navigate a maze of UX. I literally saw Whatsapp winning in real time vs Hangouts and other alternatives.
Thanks for the insider perspective.
I used Hangouts for a while and had a bunch of contacts on it when it was Android's default SMS app. Many of them were not particularly technical, including one of my parents whom I don't recall telling to use it. If you were using an Android phone, you were probably already logged in to a Google account. iPhone users had to work a little harder for it (install the app and remember the password to the Gmail account they probably already had).
I don't recall the UX on the mobile client having extra complexity over other messaging apps if I didn't go digging in the settings, but it's been a while.