Possibly. I think part of the problem is that the genre carries serious stigmas; in part because characters are often written as plain, shallow caricatures of real people, for one. Little more than walking TV Tropes pages.
The more prevalent, more serious stigma is that the genre is often associated with hentai, even though that's hardly the case with more high quality works.
Also the action is minimal and most people expect games to be action packed bombastic head turners.
While the really good dating sims don't lean heavily or at all into this, the market is still filled with low hanging fruits that very much do, which causes the quality games in this space to be ignored along with the bad.
As such, this results in a cascade effect of people not being interested to play and thus devs not being interested in making them, by and large.