PF was like Arduin: both were alternatives to the then-current editions of D&D for fans of the past edition who thought D&D just wasn't D&D enough, anymore, so they were distinct from the ed of D&D they competed with, and more like the preceding ed. It was a winning formula for both (Arduin even got sued by TSR over it).
No one feels that way about 5e, which is clearly much more D&D than the prior ed even tried to be.
But, Paizo still has a core of loyal fans, so I guess it's worth it for them to put out a PF2. But what to do with it?
The only formula that's ever beaten D&D is to come up with something even worse than D&D, while setting off a firestorm of controversy against D&D on-line (the Role v Roll 'debate' on UseNet when Storyteller took the head-space lead in the hobby in the 90s; the edition war when PF took a sales lead in some quarters c2010).
But, D&D is currently golden - everyone either praises it or remains politely silent - and new players aren't being repelled from even trying it (only repelled by actually playing it), and in the grip of much-anticipated, much-delayed come-back, so growing like crazy.
Even if PF2 retains it's loyal base, it's sales won't seem like much compared to D&D, and that seems to matter to said base, who may then defect to the 'more popular' on-brand version.
IDK if moving closer to 5e is the right call or not, but Paizo has been managing their brand very well, so I wouldn't count them out. They certainly know things we don't.