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I think there's plenty of room between gimmick and mainstream for a viable product.
Not everyone cares if a phone is a little thicker if it means they get a real keyboard.
As for the other challenges, Sony/Ericsson proved 15 years ago that they can be overcome, with the Xperia Mini Pro.
I tried the Galaxy S25 Edge for about a week. I loved how thin it felt. Unfortunately, the feeling was all it was worth. The battery was very bad, and despite being two years newer than my current phone, didn't appear to perform better in any respect.
It seems performance is plateaued, and while most of the tech industry is gambling on AI being the next big thing, most people aren't impressed. It seems like a great time to try a wider variety of phones out on the market.