As far as botting goes, it's still not fixed. There was an obvious aimbotter named 'Vinesauce' that went about for 2 weeks getting kicked out of every match (and sometimes rejoining). I can't fathom having this little moderation/development on a game that still must be making millions per year.
In my experience with Valve's servers in the eastern north american region, while the bots aren't completely gone, there are far fewer of them. Online discussion has indicated this isn't necessarily the case for non-NA regions.
I saw the vinesauce bots. It's my understanding that Valve bans any account kicked from an official server from rejoining that server for half an hour or so. Game harassers run small fleets of their bots. It's likely just another same-named bot joining rather than the same one rejoining, no?
The general population doesn't really "want" anything, they're satisfied with whatever they're fed and rarely think about it at all. Back in the server browser days you didn't hear constant complaints from people who wanted matchmaking instead, the switch to matchmaking happened because developers wanted to optimize engagement and increase their control over the game experience so they could monetize it more effectively, that's it.
Valve has always been community centered and it really shows in how all their development tools are pretty much available such as mapping tools, server tools etc.
With CSGO most of the matchmaking isn't even done in official servers, but with third party organizations like Faceit. If you want to be a professional CSGO player then you can't even rely on official servers. Nobody can go pro by playing official only when it comes to CSGO, you literally have to use third party services and their community servers.
Team Fortress matchmaking will match you to their official servers, and sometimes even on third party servers. TF also has a server browser where you can select which third or first party servers to join. You can also join directly via IP, if the matchmaking service ever goes offline.