Signal was superb for a long time, and then received a hefty chunk of funding, and, although I may be wrong, has declined since then, and in fact jumped the shark about a year ago. They attempted ever more forcefully to make users to set a PIN to protect server-side state; it started with a dialog at the bottom of the screen, obscuring about 20% of the user list, which could not be dimissed, and then after a few week…
The PIN is a security option that prevents a SIM-swapping attacker from registering a new device under your phone number unless they know the PIN. You can opt out of it (and it might be opt-in to begin with). You can also easily opt out of PIN reminders. Both of these options are in Settings -> Account.
As for server state - my understanding is that Signal attempts to be zero-knowledge overall, but they definitely store some state on the server. I believe it's encrypted using your private key that's not backed up to the server. Setting the PIN does not change that.
Server state comment aside, it seems your main complaint is about a pop-up PIN entry UI that can be opted out of? I get that it might seem annoying, but it feels like a fairly weak criticism of a messaging platform, certainly not one that should warrant an impression that Signal is "on the way out"?