I think they became less relevant, at least amongst human users, when they hit a particularly rough patch with awful reliability issues a couple of years back. At least that's when my own social circle and loose constellation of developer acquaintances started saying "we should probably avoid Fly.io".
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My first introduction to the company was the "You're all nuts" blog post that's being litigated elsewhere in the comments. I'm not an AI skeptic (just an AGI/ASI skeptic) so I didn't feel like it was targeted at me, but the whole tone and standoffishness it gave left a very bad first impression.