I don't think this is a great critique, simply because the pain I've encountered using them isn't mentioned here. The incompatibility with class components is what it is, they're different programming paradigms that you have to choose between. If your library leaned heavily into HOCs, that was an unfortunate choice and I'd recommend making a new library because HOCs were always unwieldy and had problems with composition. Nothing to do with functional components or hooks really, just a very heavy pattern that can typically be done better with another approach like render props.

I guess I see a lot of this as evolutionary. It's unfortunate that there has been so much change, and the timing might not be great for some projects, but I would not prefer a world where I was still writing and using HOCs and class components.

In my day job I work on a pretty old (in React years) project, and we haven't had trouble writing new code in a functional + hooks style. Still plenty of class components abound.