I think bacon bits are just a relic of the late 20th century. People still love bacon, but more people have access to functional kitchens where they can cook and freeze their own bacon at home, prefer less packaging on their food, and try to consume a more “organic” diet, things like bacon bits and pre-processed croutons on baked potatoes and salads are just not worth the price they’re charged for anymore. Literally the most basic home cook can make bacon with a griddle or frying pan now, which will be so much tastier and satisfying than buying some dry ground pork product which costs the same amount as the overly processed “meat” you get in a bacon bits jar.