Series hybrids can compete with parallel hybrids, because the full decoupling of the engine from the wheels claws back some of the efficiency you lose through the energy conversion. It's series-parallel hybrids they can't really compete with, because those are able to do the same trick, but they also lose less energy in conversion, because the engine does some of the heavy lifting.
Series hybrids are great for packaging, though. Parallel and series-parallel commit to certain packaging decisions like having a transmission, or a long, monolithic unit, because it's the mechanical coupling that buys them smaller motors and potentially better efficiency. Series hybrids don't care about any of that, so even though you have bigger motors and potentially higher losses, you have more freedom over where things go.
Personally, I think there's a massive untapped market in converting old cars to hybrid engines. You wouldn't try to upgrade the old engine, you'd design a smaller and more power dense package and rip all of the original gear out. Because electrification lets you cut the size of the engine down so aggressively, this is probably a feasible strategy. As you pointed out, series hybrids are probably best suited to this because of their packaging flexibility. As others have pointed out, there's tremendous potential there for replicating original driving characteristics using software and the electric motor. And if we're being honest, off-road vehicles probably should get rid of the transmission and low range, because electric motor torque is just better. As is, the potential for cars is enormous, but we're getting the worst possible outcomes thanks to legislation.