I'm also a little sad that REDengine is getting scrapped after seemingly finally getting to a pretty decent spot, and I definitely wish there was more competition for Unreal.

That being said, it's a very understandable decision given not just the capabilities and ease-of-use of UE5 but also its popularity, which means finding new developers competent with it is easier and onboarding is faster.

And as you say, it lets them focus on actually making games.