"still" is an interesting frame.
PWAs are really about quality. The add-to-homescreen banner is about the browser going "hey, this looks modern and meets our quality bar, let's tell the user it would work as an app". That sort of quality differentiation is very much the future of the web -- particularly on mobile.
MOST websites are terrible on the average mobile phone on the average mobile network. We absolutely need to get better at helping users discover the ones that aren't and direct their attention away from unusably slow content. To the extent that PWAs are a part of that, yes, I think they're going to be part of the answer.
As for apps, that's a long game. Who knows what'll happen there. What I can say for sure is that the effects we wrote up here are very much still playing out; the brands turning to PWAs are only getting bigger: https://medium.com/dev-channel/why-are-app-install-banners-still-a-thing-18f3952d349a
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