I remember hearing about it and immediately asking "what is the market for this?" and not being satisfied with the answer.
On the one side you have Samsung, who are unhappy enough with their dependence on Google that they'll not likely eat the cost of moving from Android to something else that has no strategic benefit to them (as far as I could tell, anyway).
So what does that leave? Google making its own devices. I don't know this to be the case but I strongly suspect the intent was for the Pixel line was (and may still be?) intended to be the spark for Google being a vertically integrated first-party seller of mobile devices. What I mean is these aren't just proof-of-concept or developer devices.
The problem there is by doing that they'll hurt their relationships with Android OEMs and it'd take a long time to fill that void, if that's even possible.
So where else? The obvious answer is... Chromecast. This is a hardware product Google has had a good amount of success with. It's already first-party.
A recently leaked report [1] seems to indicate that the next Chromecast will be Android TV. That is (IMHO) bad news for Fuchsia.
You have to also take into account that during the time Fuchsia has been around (which must be 4+ years by now?) there's been a change at the top with Sundar replacing Larry. That's always a dangerous time for high-profile and high-cost (literally $billions) projects with no customers. Sundar came from Chrome. Fuchsia didn't. You have to ask questions about who was the original (SVP+) cheerleader who got it off the ground and funded it? Was larry on board? Is Sundar/ Does that sponsor enjoy the same support under Sundar that they did under Larry?
I don't know the answer to these questions, just that they matter. marissa Mayer's departure from Google was largely a product of a change at the top as she enjoyed Eric's favour but all signs pointed to Larry not being as big as a fan.
Fuchsia probably should've been called Graphene. Graphene can do everything but leave the lab, after all.
[1]: https://arstechnica.com/gadgets/2020/06/googles-leaked-tv-do...