Emacs is not an editor. Emacs is not an IDE. Emacs is a platform to develop your own tooling. Text is the main interface Emacs offers.
I don't speak for the Emacs community, there isn't even such a thing except maybe semi related groups that share viewpoints, usage and interests. But on the whole, I don't think the "Emacs community" is looking for users or is looking to attract users. At least not users who are looking for "text editor experiences" that mimic or take inspiration from VS Code and the likes.
There was a "community" about a decade or two ago. On Freenode IRC, there were regulars who hung around in #emacs and it was quite nice. There were no corporate sponsors or random startups trying to hire from there so it was genuinely just a bunch of people who enjoyed using Emacs and were chatting about it. It's a part of the reason I got really hooked into it. I still use Org heavily for meeting minutes etc.
The "out of the box" experience could be better - but for emacs users. Those, who expect VS Code, should just install it and live happy.
What truly is a problem and extremely difficult to solve, is getting multi core and concurrency into Emacs properly. A truly concurrent lightweight thing would be so amazing to have and make package development probably much easier. No more worrying about accidentally blocking the UI and all that.
To get there would probably break many existing packages and would probably occupy all maintainers for 3 years or so, because Emacs comes from a time, where software was not designed to support that.
I'm not sure it does. Emacs has a healthy user base of people like you and I and appears to receive stable funding from the FSF. I don't see that changing any time soon. Emacs can be Emacs and be just fine the way it is.
I will keep suggesting new users should aim to get as close to vanilla as they have patience for, because that will teach them more about the powerful virtual machine running their text editor, and the ways it can be bent to do their bidding.