They're more fun. The programming is easier (although you can get an Arduino like experience on a ESP32). They have 5V options, which make some projects easier without having to add additional components. The ESP32 API (and the Pico for that matter) are better suited professional programmers.

An Arduino is better if you're doing something and want a quick, easy, simple to program controller. It started as a way for artists to add MCUs to the projects without having to become embedded programmers.

The fact we don't have viable western competition for Espressif is likely to become far more of a headache than all the angst about AI GPU production.

Where can you get a half decent microcontroller with wifi integrated on it? Espressif. All the others are flat out bad in some very important dimension, which isn't to say the Espressif products are perfect, but they fit in the important ways.

Different tools for different needs.

Power draw, and 5V.