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I think that people wanted Johto to get some attention and there were some nods to those games, such as including one of HG/SS Team Rocket admins and Blue becoming the Viridian City Gym Leader. At the time, it did make me think that they were potentially setting up Let's Go Johto games. But they were made partly to attract Go Players into the main series and to get more people to buy a Switch before Sword/Shield came out. They could always try to attract more Pokemon Go players since it's still arguably their most popular mobile game, but I feel like that should have happened earlier if that was going to happen.
Well I think the major reason they were trying to attract mobile players is that back then they thought dedicated gaming devices were dying and mobile was the future, they've gone on record saying they didn't think the Switch would succeed. They likely thought attracting mobile gamers was the direction to go because they thought they would need to make mobile style games to build the Switch's userbase. Since then, LGPE did about average for a remake and the Switch has defied expectations because of some impressive early games like BotW and Mario Odyssey. So in a sense they've been proven completely wrong about all of this, they might not think enough mobile gamers are biting to be worth appealing to on console and what people are most attracted to with the Switch are the large, open area types of games. And since LGPE, they've been going in a completely different direction taking more inspiration from BotW than mobile. So I don't think it's a timing issue. I think they just don't think Let's Go is the right direction for the Switch anymore so they haven't continued it. To their credit, they have integrated some of the positive gameplay elements into other games (we've seen recent games include overworld spawns, co-op, PC anywhere, and throwing Poke Balls at wild Pokemon without battling) but as a whole I don't think they're interested in making more Let's Go games.
I don't think Legends games are supposed to replace Let's Go exactly. Let's Go Pikachu/Eevee were still effectively Yellow remakes. Legends are a different kind of main series game that aren't going to replace remakes.
Well, yes and no, I don't think you can really call them a direct 1:1 replacement but they do seem to be a spiritual successor to LGPE that Game Freak would prefer as their side projects. Yes, Legends games aren't entirely a recreation of a past Pokemon experience, they're more reimaginings of older regions than remakes, but for one I don't think Game Freak is really interested in remakes anymore. You can kind of feel with what Game Freak is done lately, they're not interested in recreating an old game where they have to stick to the script and exclude newer features and design practices, they feel that's too limiting. It seems like they want to continue making open world games, and they especially want to shake up the Pokemon rosters of older regions, including adding in Pokemon that were introduced after the originals, adding in cross gen evos, variants, convergents, etc. And at that point it's far too different to really be a remake, it's a different game that's just set in the same region, hence they just go with the Legends branding. So I don't think Game Freak wants to bother with them anymore, it prevents them from doing what they want to do with new games in old regions.
That being said, there are a few subtle things in LA that do seem to have been carried over and redone in a way to make them more appealing. Like LGPE, LA is based far more on catching multiple Pokemon and less on battling. You're encouraged to catch multiples of the same species and you can do so just by throwing the Poke Ball directly instead of battling them in the wild. They just seemed to have redone those mechanics in a way that feels more appropriate for a console audience. I think in that way, LA are close enough to Let's Go that most of the people interested in that style of play would still be interested while they can do other things such as more conventional battling and the BotW style gameplay to draw in players that probably were not interested in a mobile style game (I am part of this group for sure, I could never get into LGPE's motion control based mechanics and simplified gameplay but I love open area exploration games so I thoroughly enjoyed LA). So I do think while they are slightly different styles, they're close enough and Game Freak is probably not going to make more Let's Go style games and will be making Legends games instead, so in that sense they are a "replacement".