I think it’s fair enough to say that, from the perspective of community momentum and extension momentum, they’ve “won”, sure. It’s also fair to say that in many cases a user’s text editor doesn’t need quite that breadth of extensibility and/or feature-richness, and that winning that war (or battle) isn’t really all that important to at least some subset of users.

That’s where Xi fits. It’s saying “these things we don’t get from other editors are important”. Users are free to decide which feature or attributes are most important to them. At the end of the day, users win!