Yes, it’s a dangerous combination of media/IT illiteracy/incompetence within the general public and profit-driven proprietary social media algorithms that only aim to keep people engaged for the longest time, no matter the content they are being served. And usually, the more extreme the content is, the higher the engagement, the more revenue to be made from serving ads to the users and selling their collected data. This currently leads to a rise of misinformation, anti-scientific thinking, and so on. Which just so happens to align with extreme right-wing ideologies.
There’s a perceived unpopularity with these genres. However, some truly great games like Baldur’s Gate 3 are living proof that you can make a niche genre very popular. It’s just that almost no one tries, or doesn’t like the risk involved. That’s why you don’t see a lot of these genres anymore. Well, you DO see them, if you look close enough and include indie and A/AA titles, but a massive AAA title with big budget and advertising for those genres is pretty much non-existant (I’m not familiar of any other exception like BG3). I think big studios are unlikely to risk such things. Look for smaller game studios, they’re much more innovative and either keep “dead” genres alive or they try mixing genres in innovative ways.