One of the big arguments I remember from the early days of kiting is that it was more appealing than windsurfing because you didn't have a sail in your face all the time. Winging looks like you constantly have a sail in your face. I do notice that winging seems to look less ungainly with smaller wings (more wind), as the wing itself is less obtrusive.
Not sure I see winging as more suited to racing. The advantage of kites when it comes to racing remains: the ability to generate extra apparent wind power when needed. This allows for racing at speed in lighter winds & perhaps more complexity to racing strategy. However, one big advantage of winging would be the ability to have closer racing.
Locally there is a crew of windsurfers who have entirely switched to wind foiling over the last few years. I will be interested to see if they convert to wing foiling this year. To me, that seems like a more natural & inevitable progression than the switch from kiting to winging.