You pretty much answered your own question. A lot of guys are just not going to see a lot of added value from the Gen3 over their Gen2s, because they just don't need to stretch to distances that 10x would come into play. Why pay eight hundred bucks (plus) more for a Gen3 that's not delivering much more value to them? If money were equal, yes, I'd argue that the Gen3 is an objectively better scope than the Gen2 in every way, but the money isn't actually equal.I can understand if I were on a budget attempting to secure best bang for buck.
We're kind of in a fun echo chamber here with people buying scopes that are $1k-$5k+. Outside, 95% of gun owners think a Vortex SE 1-8x at $300 is super expensive and as much LPVO as anyone could ever need.