Far better off for who? People constantly dismiss spreadsheets, but in many cases, they are more powerful, more easily used by the people who have the domain knowledge required to properly implement calculations or workflow, and are more or less universally accessible.
Especially for collaboration, access controls, etc. Not to mention they could do with unit testing.
That’s also the reason that so-called “Shadow IT” exists. Teams will do whatever they need to do to get their jobs done, whether or not IT is going to be helpful in that effort.
Where it might not be obvious is that IT in this context is not just pulling wires and approving tickets, but is "information technology" in the broader sense of using computers to solve problems. This could mean creating custom apps, databases, etc. A huge amount of this goes on in most businesses. Solutions can range from trivial to massive and mission-critical.
The team that needs it ends up managing things itself without central IT support (or visibility, or security etc..)
Think being given a locked down laptop and no admin access. Either get IT to give you admin access or buy another laptop that isn't visible to IT and let's you install whatever you need to get your job done.
The latter is often quicker and easier.
My view is that it's not a failing, any more than "software development can't be estimated" is, but a fact of life. Every complex organization faces the dilemma of big versus little projects, and ends up having to draw the line somewhere. It makes the most sense for the business, and for developer careers, to focus on the biggest, most visible projects.
The little projects get conducted in shadow mode. Perhaps a benefit of Excel is a kind of social compromise, where it signals that you're not trying to do IT work, and IT accepts that it's not threatening.
There's a risk, but I think it's minimal. Risk is probability times impact, measured in dollars. The biggest risks come from the biggest projects, just because the potential impact is big. Virtually all of the project failures that threaten businesses come from big projects that are carried out by good engineers using all of the proper methods.