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Selfhosted
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Many people have not used XMPP in years or never and go by hearsay of outdated information.
Matrix on the other hand had several million Euros of venture-capital to fund a marketing campaign.
Thos, exactly this. Whenever I ask the question OP asked, it's always some people who used some ancient client in 2008 and never bothered to try again. And then Matrix came to existence with their marketing and they happily started using it, even though it didn't have any better features
The biggest hurdle for widespread adoption of open platforms, imo.