Yeah it used to be that IDTech and Unreal were extremely popular in the AAA development space, now (to caricature the situation) CryEngine gets laughed at, Unreal gets derided for being Java-esque bloatware, and Unity still gets ignored by AAA devs.
Among the indie developers I know, CryEngine gets laughed at, Unreal has a small guild of zealous fans, and Unity is overwhelmingly popular (yet they all bitch about its flaws).
So if anything, proprietary engines in the AAA scene have kinda made a comeback in recent years!
Except behind the EA iron curtain, where Frostbite is basically their own internal "off the shelf engine" a la Unreal, which they've forced onto all of their studios, wiping out all their other proprietary engines in the process...
While I do not share the same experience with CryEngine being laughed at, I will say that (depressingly) nearly every indie team I join wants to use Unity to create their game, and every new team member almost immediately assumes we will be using Unity despite its cost and flaws. The last team I was on had the absolute worst asset chain I have ever had the displeasure of working with, all in an effort to bypass Unity "features."
Unity is a great product, but it has a way of turning the ideas in your head into clunky and unwieldy messes. It effectively turns small, simple projects into twisted nightmares, unless everyone on your team has some experience with the software, which is ironic because the push to use Unity usually comes from non-coders as well. I do not foresee it ever having a large presence in AAA game development.