I think they think of time capsule as a done deal. It doesn’t bring any extra money for them, and even though it’s broken, it exist to a point that when they’re selling a Mac they can say that it comes with a backup software as well. Just like a shady landlord tells you that the apartment facing a wall has a nice window.

I don’t know what these engineers are doing at Apple, but it surely isn’t making the ecosystem better, they’re just chasing hypes and shinny useless UI changes.

The cynic in me thinks Apple more or less gave up on Time Machine while ramping up on selling iCloud storage as a backup solution for macOS as well as iOS/ipadOS devices.