Yes and no. By being the de facto standard and housing most of the people, it somewhat stifled innovation in the space. Sure there were a ton of front ends built over the top of it, and the space was vibrant, but it really shined after they were forced into the spotlight. It was like turning on a flashlight and spiders scattering everywhere. The scatter breathed new sustaining life into many many projects.
That's a feature, not a bug. It was close to perfect, no pointless UI re-designs required. Fast, lightweight, no bs.