I predict that this will blow over, and won't be a big deal in a few years time once FOSS drivers for what is effectively just a new breed of TPM are released.
If in five years, it turns out I was wrong, I'll eat my hat. Although defining "my hat" by then might be difficult, as it'll probably be subscription based.
This is not the end. They'll keep pushing, as slow as they need to, with Windows 11 being the next step. They didn't suddenly lose the incentive, they just met resistance.
In my particular case, I stopped upgrading Windows around 7. It is only last year that I decided to upgrade and that was also the year I moved to linux as my main driver. I am not an average user, but I am not kernel contributor either. I am just a guy, who wants some stuff done on a PC I own.
And that might be part of the issue. People need to feel the pain from the devices they have been sold so that they can learn why freedom and ownership is important.