I don’t think it’s becoming a blox fruits clone. There are very few similarities between the two of them, and majority of those similarities are pretty superficial and fall apart upon closer inspection. Even elements of AO that you believe are copied/inspired by blox fruits most likely come from one of vetex’s previous games, Arcane Adventures, which I believe came out before Blox Fruits did.
Yes, both games are sea-based games with elemental powers and a stat point system. But the similarities end there. While blox fruits is nearly a simulator with no real purpose to the game other than levelling up and PVP, Arcane Odyssey is a story-driven exploration game with tons of immersive features. You said the revamp is killing everything unique about the game, but which unique features are leaving except for the dynamic NPCs and Cultures? Everything that is being replaced in Arcane Odyssey is a significant upgrade compared to WoM, including the features that were removed.
I made a post earlier this year about some of the features Vetex had developed this year, it might help you get a bit of a better idea of how AO will be and how it’s entirely an improvement from WoM: Arcane Overview - TGR in 2022
If you could elaborate more on why you think it’s a blox fruits clone we could better explain/discuss it, or answer any questions you have on AO