Windows 11 changes the UI, which is an immediate non starter for many. It doesnt support 7th gen or older platforms, which wipes out a LOT of legacy hardware. It needs TPM 2.0, which wipes out yet more of the applicable hardware. It offers nothing to the end user in terms of useful software updates or features. Is it any surprise people dont touch the damn thing?
And guys, look, lets gets oen thing clear here. Can the TPM requirement be worked around? Absolutely, just like windows 10 can be tweaked to boot on a pentium III. That does not mean the vast majority of users will do that. Most users do not know how to bypass TPM 2.0, fewer want to try and modify windows 11 so it will boot. Of the tiny percentage of end users who DO know how to do this, even fewer want to. Could I bypass the requirements ot get this to load on my PC? absolutely. Do I want to? HELL NO. If I wanted to tweak and bypass stuff to get my OS to work, I'd use linux (which I do, for the most part, since if I'm putting that work in I'm avoiding MS at all costs).
MS shot themselves in the foot restricting windows 10.1 so harshly. Backwards compatibility is a big selling point for windows.
By "hefty performanc penalty" you mean 1%? Because those who HAVE worked around the restrictions have reported almost no difference in performance.
Requiring TPM 2.0 is just a dog and pony show to work witht he like of netflix, amazon, et al that want to stop those eanie pirates recording their content. And if you believe conspiracy theories, a way to ban people who say no no words from ever using a computer again.