I think we can all say that S&Box had an unfortunate launch but it's understandable why. But this is not about that, with the og Gmod gamemode so reliant on player interactions and creation, that basically just completely hurt the chance of this to shine.
Adding onto that, the sort of cloud based approach doesn't give you much to work with. It relies too heavily on hotloading which requires decent hardware and internet. And with GMOD it used to be just hot loaded too with Toybox so I do think that clould based content can work but just relying on it alone is not enough.
Both low player count and barebone system sort of lead to this drought that has been a thing since launch, with hardly any major updates specifically for this being done from Facepunch themselves(Hoping they'd be adding new tools for the toolgun and such, but it's really only the weapon base being occasionally updated that I remember)
With all that said I think this is a mode you can't go wrong with, and with Garry FINALLY realises something had to be done and now we know workshop and addon system will come hopefully this can finally shine in its modern engine and source 2 glory. (And still there are a lot of stuff missing that's already in GMOD so that needs work too)