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Agreed. At least we can take comfort that while Andor is underperforming the other Disney+ SW series, it's been getting very good reviews and is still more popular than many streaming shows.
Mandalorian was lightning in a bottle and will be hard or impossible to replicate. Baby Yoda went viral and Din himself is a very cool character. It was must see for SW nerds, but even casuals loved it. My wife loved it and her SW knowledge consists of remembering that Luke was Darth Vader's son. Right before Mando took off his helmet for the first time, she was arguing with me that Din (and that "other guy with the helmet") must be robots. When Andor came out, her question was, "Is Baby Yoda in it? No? OK go ahead and watch without me."
But Andor's greatness is enabled by the movie lore that precedes it. When you layer all that spy intrigue onto such a richly crafted universe, it makes it doubly awesome. If we didn't already know and love the SW galaxy, it would be just a hipster sci fi indy serial without alien make up, dueling space wizards or Michael Bay explosions.
It being streaming of course popularity on release isnt as important as with a blockbuster, Disney+ can potentially benefit from positive buzz around it for months, espeically as like you say its something suitable for binge watching in 3 episode blocks.
I think the mistake Disney made with the sequels personally was going for the vague "Oh yeah I remember that a bit" market for Starwars by hiring Abrams to do his normal formula, yes it did massive business in the short term(business stored up since 1983 really as the prequels didnt tap into it massively) but pure nostalgia like that will only last so long. Really I think Starwars is arguebly the only franchise were you can still do massive business aiming at hardcore fans because it ha such a big fanbase. Aiming at that market they could have done Rogue One like business for year after year but instead by they were slowly killing the golden goose with films made by people who clearly didnt care much about Starwars.
As you say really I think Starwars has so much potential in it beyond just a quick nostalgia fix, Trek I could understand at that point as I think you could argue with so many hundred episodes of TNG, DS9, Voyager and Enterprise plus 4 TNG films it was really a bit of a played out franchise in the late 00's so a light nostalgia fix was probably the best bet. Starwars really though had only scratched the surface of its potential in terms of films and live action shows and realy the setting isnt that limiting at all.