Then things like MSN Messenger got popular. Protocols got locked down and screen real estate got consumed. For some reason everyone wanted to use Google Talk (which was horrible but at least spoke XMPP so folks on Pidgin could still chat with their friends). BB messenger taught a few tricks to Apple. Then facebook messenger happened, whatsapp, wechat, etc.
In the background, there were programs like teamspeak and mumble that were trying to do voice chat for gaming reasons. In a way, these were the precursors to Discord who now, for some reason, dominates what people consider a good chat UI. I personally think it's a bloated mess. In my opinion, ICQ had the best chat UI. Because it stayed out of the way.
It's too bad it turned out to be spyware! Hah