For most businesses it delivers what they wanted from an app at a fraction of the cost, with one codebase and no store approval. Fold, our church management product, is a PWA for exactly that reason: congregations install it from a link.
A native app is still right when the product needs deep hardware access or heavy offline work. For members, customers and staff who need a tool on their phone, a PWA is usually the correct first build.
It also works offline, which for a congregation, a field team or a school in an area with patchy signal is the feature that decides adoption.