I consider HS2 to pretty much be the superior rendering engine for AVN's yet there are barely any games based on it
There are still some VNs made with HS2 out there, but surely less than made with HS1 4 years ago.
I personally see at least two reasons for that development:
*AI has replaced Honey Select as tool for those who just want to throw out content quite quickly.
*Steam doesn't allow Honey Select-Games on their platform and this can be a big source of income, once one has made a 1.0 of a game.
In general working with HS2 is always a grey area, as the company behind HS2 (which doesn't exist anymore today) did never allow to use HS2-Images for commercial purposes. But they also never sued anybody.