I think the problem goes beyond that. Meta never had a particularly coherent story for what "Horizon Worlds" was supposed to be to users - it was variously pitched as an online conference room, a social hangout, a way to explore 3D models, a video game... it felt as if they were throwing ideas at the wall to see what stuck, and nothing really did.

Ultimately yes, that was the issue. In theory they built a viable product, even if it still was cartoonish etc. But it was enough to see that even if it was perfected - there simply wasn't a killer app for what to actually do in there. The vast majority of the worlds that got any traction were just kids playgrounds with silly or trivial games. Some of them were quite fun. But none of them represented a serious value proposition to anybody with actual money.

The crazy thing is, they built a half decent app called Horizon Workrooms. You could go in there with colleagues and co-work. With so many people WFH it was an actual useful thing to be able to share a room with your colleagues and anybody could throw up a shared screen on the projector, while having your own display in front of you that nobody could see. I did this with folks from my team and it became a regular Friday afternoon type thing for us all to hange out. This was actually useful. But they managed to screw it up and eventually canceled it as well.

That's what metaverses are like - big spaces in which users can do things. What to do is largely up to the users.