Ideally OTel would be more than observability, imo. Traces would be event-sources, would be a thing that begets more computing. The system to observe computing should in turn also be the system to react & respond to computing, should be begetting more computing elsewhere. That's the distributed system I want to see; local agents reporting their actions, other agents seeing that & responding. OTel would fit the need well, if only we could expand ourselves beyond thinking of observability as an operator affordance & start thinking of it as the system to track computation.
Querying unfortunately has lots of room for innovation, and it's really hard to nail down in a spec especially when the vendors all want to compete.
At BigCo we have migrated a number of internal things to Otel but I don’t think it has been worth the effort.
So many projects come with prometheus metrics, dashboards, and alerts out of the box that it becomes hard to use anything else. When I pick some random helm chart to install you can almost guarantee that is comes with prometheus integrations.
With grafana mimir you can now scale easily to a few billion metrics streams so a lot of the issues with the old model of prometheus have been fixed.
Like you said I don’t think there is much to innovate on in this area, which is a good thing.