Re: Or is it getting better fast....
I expect that there are a great many interesting aspects to this (it is not an area I am familiar with), but splicing does not look to be a show-stopping problem - I have seen papers from 2013 discussing it.
While not addressing splicing in particular the following 2020 article gives an introduction to HCF:
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7695690/
It would seem that Corning have got solid fibre close to the theoretical limits; HCF offers an approach that might have further potential. Lumenisity seem to have moved the technology from research quantities into commercially useful (for some applications) quantities. ISTR there were some BT trials starting a couple of years back. There is probably a great deal more work to be done, but to build up a commercial business requires investment - Microsoft might have made an astute move.
Of course there can be many a slip twixt cup and lip - but I hope that it turns out well and provides a significant breakthrough of fibre optics research moving into widespread use.