I think they became less relevant, at least amongst human users, when they hit a particularly rough patch with awful reliability issues a couple of years back. At least that's when my own social circle and loose constellation of developer acquaintances started saying "we should probably avoid Fly.io".
My first introduction to the company was the "You're all nuts" blog post that's being litigated elsewhere in the comments. I'm not an AI skeptic (just an AGI/ASI skeptic) so I didn't feel like it was targeted at me, but the whole tone and standoffishness it gave left a very bad first impression.