I think there is a lot of potential in niche-specific utility tokens. However, the market at large is still too new to fully adopt these. It's like a trend that is ahead of the trend too far, So this trend is not accepted and is rejected. Sort of like pets.com. It was a great idea but launched a bit too soon.... A few years later Amazon came out and it took over.
I think a lot of these utility tokens have huge merit and could do really well, just the general public and mass adoption of cryptocurrency has to happen first.