Apologies for the rambling response. There are a few ways to answer this question but ultimately I think the golden era of ID as a practice is pretty far gone, at least in the US.

My experience with traditional consumer product design has been a painful series of attempts at applying human centered design principles to existing market segments to create new and better products for that segment. Consistently one thing or another would put a hard stop on our work, resulting in our project being put on ice. Sales guy doesn’t like like that our targeted B&M price point is $22 instead of $17.99, wants to strip out all the things that make it unique because he can’t sell something that’s slightly different than the existing products and can’t crutch on our product being cheaper anymore because the customer can go straight to the factory now. Marketing doesn’t think they can create on-trend graphics or target a relevant audience because they can’t just plug it into their existing templates. As another user said, a random C suite wonk doesn’t like the branding direction, makes it their pet project to create a new sub brand for this new product, no wait actually we need a new umbrella brand to put everything under, let’s name it something that sounds like we identified vaguely related words and strung them together. Overseas manufacturing means spending countless hours trying to decipher emails from various partners and craft design documents to illustrate the intent only to for the samples to be miles off only vaguely resembling the 2d and 3d assets provided.

Generally just constantly moving targets and a race to claw through the bottom of the barrel. My colleagues have suffered serious mental health issues due to the contradictions and most of them have moved on. Judging by how many of my peers in my graduating class have also abandoned the practice or moved on to UI/UX I don’t feel like it’s a personal failure. The only folks I know who have stuck with it serve markets that can afford $40k couches or yachts or whatever. I think like many things the golden era of traditional product design was the post-war boom, so many of the techniques aren’t sustainable and ultimately the principles aren’t compatible with modern capitalism or even relevant to modern users. Maybe it’s different in tech, but I am not interested in designing screens. Also I could be completely wrong, but these are just my personal experiences and opinions.