Having had a look at Hangouts, its not a rival to Whatsapp.
Hangouts rival is Skype or Facebook chat.
Whatsapp is different, its an 'always on' chatting (by text) app, not for videocalling or speaking to people.
and who actually talks to people nowadays?
when was the last time you made an actual phone call to family or friends?
I don't get that at all. That's how I use Hangouts. It's core is group text messaging. The video stuff is additional. I have Hangouts open for the people I sit with at VIlla, for several games that I play (like Ingress). I have one for family. It's real time text group chatting and it's not owned by Facebook. I don't know what you are looking at.