I disagree. I work in a large environment, and rsyslog is where 90% of data goes to first. It can keep up with millions of messages per second, route them to higher order services for indexing (bigquery, splunk, elastic etc etc). Has rules engines, encryption, supports multiple protocols and obviously has TLS too. You can surely augment with otel and such where you can, but syslog is uhhhh, deployed in so many places that it would make an average app developer's head spin when all they're used to is application logging in a controlled structured place in their silo.
Even SC4S, splunk's docker appliance for turnkey syslog uses rsyslogd.
Edit: being pedantic -- it's syslog-ng actually.
On the other hand, traditional syslog is UDP based, so as soon as the receiver experiences CPU or I/O starvation and its receive buffer overflows, it will begin dropping messages. That's not great for observability, and may well be impermissible at many sites that need end-to-end log integrity (e.g. audit logs).