RE: Why is layer 2 important on blockchains?

I see with Hive Engine is that there is no proper budget available and no maintenance or innovation being done around Hive Engine. This is not the case with all the second-layer blockchains.

Very true. The problem when things remain at this level something has to give eventually and when left unchecked for a longtime the burden. Becomes to big to correct that a promising venture ends up collapsing or being overtaken by those who noticed that challenge and took advantage to build there own platform for self benefit.