In addition to what you said, the idea that the endpoint should determine state and drive the possible sequence of actions is not obviously universally a good thing.

Many projects involve stringing together capability from different systems (via their api's) and creating essentially a new business layer on top of the combination of those systems. Now the abstract high level state is really managed by the new system and the component systems are just providing foundational capabilities.

The idea of HATEOS seems interesting but with limited application.