As kusalananda says in the comments, we still use terminal emulators because we don't have an alternative.
This trialism is observed only in unix based systems. You can live on a windows machine for years without ever opening a dos prompt.
I guess the reason terminal emulators are still a thing today(in unices at least) is because we haven't found a better way to use the shell interactively. And shell is a very useful part of unix based os's. You can't program your mouse to do stuff you find yourself doing again and again(well you can, but it's not nearly as elegant as the shell).
So, the terminal emulators will be around till the day we find a better way to communicate with the shell, or an alternative to the shell itself.