Not surprising, Blizzard has lost its way and its brand doesn't mean what it once did.
The fall from grace started with the advent of paid services, and in game cosmetic shop in WoW and all of the issues surrounding the launch of Diablo 3 (let alone the disaster that is OWL/Overwatch, complete abandonment in HotS, etc.)
Maybe it's not that it lost its way, it's that they made very good games that people wanted from 1998-2005, made reasonable followups, but what people want from games has moved on.
I can only speak from personal experience. I absolutely adored Overwatch at launch but about a year ago I uninstalled it and never looked back.
What finally killed it for me is the role-based queueing. It locked in the developer-proscribed 2/2/2 meta and made the game feel very static and uninteresting. Previously, if you saw a gap on your team you could switch to a completely different role to fill the void. Though even before role-based queuing there was a (very annoying) portion of the community that believed you had to be playing the high-end "meta" even when you're at the lowest ranks or playing casually and would complain endlessly if you did anything different.
I used to completely agree with you re: 2/2/2, but I've been getting back into competitive lately, and the matches are much more predictive and it's much easier to figure out what you're supposed to be doing based on your role now. It's very "coachable"/"trainable" in a way that open queue isn't.
The problem was that for a long time they had no open queue, you either had to play healer or wait a long time. That killed the game, there is no coming back after losing that many players.
Team Fortress had that right - if you have a team that wants to all play medic let them do it. Perhaps have a game mode that forces 2/2/2 for those who want it but allow the mad scramble and the meta to develop organically.
It's not unique to Overwatch and applies to any team game that requires voice-chat but I'd play it (and enjoy it) a lot more if I wasn't constantly harassed by people who seem entirely incapable of wrapping their head around the existence of a woman who plays video games. Quick Play is usually fine because no one really uses in-game voice chat (on xbox at least, though you will occasionally get nastygrams in your inbox) but competitive play is an unmitigated disaster.
Overwatch is quite sad in a certain sense in that it's kind of drifting, when it's probably one of the most approachable, fun, and stable games I know. I've played a few seasons in an esports team in a rival FPS, and the game is just full of annoying issues that I don't get in overwatch.
The whole original vision for OWL was teams would travel around the world and play at esport arenas filled with people who bought the ticket. And then covid hit.
I played the game since release in 2016 and when OWL was announced it all felt a bit... forced.
There were huge org buy-in fees (in double-digit millions) for even fielding a team, completely unheard of for an esports league, and it was coming out of the gate with almost zero community competitive scene to back it up. Esports scenes thrive on an amateur/semi-pro/pro feeder system and for the parent company to dump a hundred million dollars at the top end without waiting for organic growth at the bottom smacked to me of a cash-grab by Blizzard. Also, Blizzard established itself as a monopoly with exclusive rights to create tournaments, which really rankled with the semi-pro players.
Aside from the tedious balance issues that resulted in us watching an entire season of OWL where top-tier hitscan dps players were forced to play tank, the whole top-to-bottom emphasis on "support team [geographical location] [adjective]" did nothing to foster support for particular squads. Esports leagues are rootless - there are no Wolverhampton Wanderers or Gunners on the Internet - instead people follow specific players for their individual playstyles and skills.
The most hilarious example of the most tone-deaf enforcement of this was when Seagull (one of the OG beta testers that somehow exploded and got thousands of viewers on Twitch) got signed to Dallas [whatever adjective] and proceeded to spend the next 6 months benched (and offline on Twitch) because his skillset wasn't meta. He then spent a single season in competition, quit, returned to Twitch and made orders of magnitude more money from doing whatever he wanted than he would have got in the League.
The thing that sealed the League as a scam for me was the introduction of linkage between a Twitch account and your OW account - you could gain in-game tokens to buy cosmetics from time spent watching OWL on Twitch, but this was trivially defeated by setting the stream to 160p resolution, muting the tab and continuing to do whatever you wanted. At that point it was obvious it was all about gaming metrics and not making a game, and I got bored and left.
The fall from grace started with the advent of paid services, and in game cosmetic shop in WoW and all of the issues surrounding the launch of Diablo 3 (let alone the disaster that is OWL/Overwatch, complete abandonment in HotS, etc.)