It sure is a problem when so many competitors are offering better steels for the same price or less. Kershaw isn't the only company stuck in this trap. The Chinese-made Spyderco models probably get the best heat treatment you'll find for 8Cr but it still doesn't compete with the 9Cr, 10Cr, N690, or 14C28N that you can find at those prices (or less). While 8Cr13Mov might be a little tougher, all of those steels have reliably better edge retention and corrosion resistance.
Another part of that is just how long Kershaw, CRKT, or Spyderco have been using 8Cr13Mov on their Chinese budget lines. They've been using it since before we'd ever heard of brands like Civivi, Kizer, Petrified Fish, etc. I remember welcoming it back when I was rocking a Kershaw in AUS-6, but that was a very long time ago. In other words, failure to innovate or adapt is the reason that Kershaw has been "cooling off".
That said, 3Cr13 is laughably bad as blade steel. No joke, that steel is often used to make the liners in other knives and the bodies of steel frame locks.