Being written in Rust has mixed effects. Rust is still less mainstream than C, so fewer people can contribute. However, it does attract more interest because it's different.
However, the reasons why you create/contribute to new-but-similar projects is to add functionality that the original project doesn't have. By nature a coreutils replacement has to behave like coreutils or else it will break many configurations. This severely limits the functionality you can provide. So why are people (and Canonical) contributing so much labor to something that still doesn't function as intended?
I say it's the licensing. I say this as someone who regularly gets requests to change the licensing of my software (more than any feature request). I think licensing is a big deal, and most software devs recognize that.