I think what Hive is missing to become more popular is in fact entertainment, and in today's world entertainment = memes and short form videos.
As now, we don't have a proper frontend to post good pictures and short videos. If you go to my Instagram I have dozens of those and I'd really like to post them here too. I'm posting pictures of my project on Liketu, but I see it's not so popular and there's little to no entertainment there.
Then sure, the first thing to attract new people I think is the rewarding system. But talking from my personal experience, I'm still here because I was looking for a blogging platform (and I found so much more). But really there's very few people interested in that, same for crypto money. People come here and see a bunch of blog posts talking about crypto and unknown play-to-earn games, I can see why it's hard to onboard