What's the deal on the 2023???

I am not sure if this is a right place to get an answer you are looking for - Most of the current Prius drivers probably could not care less for general depiction of "automotive beauty" or if their car goes 0→60 in 7 instead of 10 seconds.
The new version is not really a pure upgrade in every regard - it is much faster, it is sleeker looking, new infotainment, I already had opportunity to test before, is properly nice, US version will have normal working screen with buttons for HVAC and other functions.
In terms of capacity, it has smaller boot, less headroom, less comfortable tires, same efficiency, tiny bit smaller fuel tank.

For me, PHV version is in my scope, because if I would to pick a pure hybrid It would probably be Corolla or Civic as I feel you get more value for the money (not to mention on Corolla you can get optional adaptive suspension (at least in my country, on the other hand AWD version of Corolla is probably US limited, for now).

BTW new Prius is less aerodynamic, so that "stupid shape" was at least useful

 

they are trying to appeal to new buyers. the old shape held the theory that people who wanted efficient cars wanted different looking cars. they learned a lesson, albeit after 20 years,