Facebook is not very popular among IT people in corporate world.
The story mode was much loved as well - my mother (an ex kindergarten teacher) would read the stories to my niece and nephew and they loved the AR effects and filters it applied to her, in tandem with the story.
My family uses them so my parents can see my kids and they are great. We plop down on the floor in front of it and everyone has a chat, sees the kids, etc. propping up phones and straining to hear/see things is much inferior.
This was conceived prior to the implosion of the Facebook brand during the Cambridge Analytical revelations. It's hard to say for sure how successful Portal would have been in another universe where that didn't happen.
If it worked the way people wanted and was available in April 2020 people would have used it.
If you talk about privacy they don’t care but they absolutely do when it comes to “I was talking to my friend about X and suddenly I’m seeing ads for it everywhere - my phone must be listening to me”. Their phone may not actually be listening to them but as soon as they see what it means, people hate how their data is used. They just never made the connection before.
A large number of people in your circle / on HN / etc perhaps, but I think the vast majority of the general population have no such concern.