There is real-world demand for a properly secured messaging system (either real-time or asynchronous) that is as ubiquitous, as accessible, and as technologically neutral/decentralized as email.
I think you hit the nail on the head that if we could go back in time and email was encrypted from the start, it would be great, and there is a demand for that. But people keep trying to do that time travel by adding encryption after the fact, and like you I just don't think PGP works for that, I think it's throwing duck tape on top of a technology that is just not designed to handle it.
I'm not saying we should drop all email and move to something like Matrix, I still use email today for a lot of stuff. And I'm definitely not saying everyone should use Signal as a full email replacement (the phone number requirement and centralization problems make it unsuitable). But in the long, long term it would very likely be easier to drop email and move everyone everywhere to Matrix (or something else, it doesn't have to be an instant messenger), than it would be to try and retroactively make email encryption work well.