The crop factor itself is not really the problem. Being significantly different to stills images, using different lenses for stills and video etc. that is annoying to deal with.
With video cameras, there is no issue because they are not for taking stills, e.g. one purpose only.
Yep, this is the correct answer. The crop is basically a problem for two reasons
1. It makes you shift fields of view between different modes, which is annoying; workable, but annoying. And when competitors do it without crops (a7III, GH5, etc), it stands out.
2. People will accept it if it means the sharpest possible video as a result. So, for example you dont really see people complaining that the FUJI XT cameras crop in some modes, because they are class leading video. Almost nobody complained that the GH4 cropped in 4k60 because no other cam had 4k60.
Canon's problem was bringing weak video performance AND having weird items that were crippled