Arduino was always a terrible pseudo-language/IDE, taught bad workmanship, and had problems with fast chip io handling etc.
However, it was a "standard" boot-loader, had consistent documentation, and a wide community of users. It encouraged people of all skill levels to play with chips, and that was great.
These days a full Linux SoC is often cheaper than most mcu. The age of the Arduino board will just end a little quicker now. Generally, irritating a planet of bored computer engineers does not end well for a business. =3
The problem space a full Linux SoC solves is very different from the problem an MCU solves. (Imagine a lot of real time io, interacting with a lot of peripherals etc....)
What's eating Arduino's lunch is the various mcus: risc v, stm32, esp32 etc...