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Never understood the appeal. Like, yeah, it tasted mostly like real meat, but there was nothing better about it (including environmental impact). And the vegetarians I knew -- especially ones who grew up not eating meat (or a specific kind of meat, in the case of an Indian co-worker who didn't eat beef), they'd rather have a veggie burger that tasted like beans/veggies than beef, since they didn't care about that flavor.
So, the dimension it's better on is pretty straightforward: Animals aren't killed for it.
Who products like this are for, though, is more interesting than most people think. Like you say, most vegetarians don't eat this stuff regularly.
In my experience, these primarily serve two groups:
  1. new vegetarians, who are struggling to figure out what they can eat
  2. normal people hosting vegetarians, who have no idea what to cook
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