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I think, it’s a myth that matchmaking has to be bad to survive. We see that in gaming all the time. The problem is just that physical world matchmaking is optimized to get recurrent customers instead of finding good matches. And that inevitably tanks the reputation. The first dating platform with good matchmaking will be the last one standing because it will suck the competition dry.
There is a market for good matchmaking. It’s just not as big as the imagined market for bad matchmaking (which we see now isn’t actually that big once people realize that the service sucks).
Also there are still “for real” matchmaking services — for marriage — in plenty of cultures. This is a pretty normal way for folks to get married in many countries. If these apps had gone for being “the digital version of that” instead of algorithmic enshittification, maybe it would be a different story