In fact, I would treat it to be something that would make the end user install more apps on their device. I do not understand the logic behind this decision by Google. Just the way they did with Office apps, Hangouts is now being split into separate apps.
However, Google claims that the division has been incorporated to make it easier for the business customers. The Hangouts Meet is aimed at the Business communication while hangouts Chat is for the regular chats and video services. Google has been expanding its Google For Work portfolio and the current updates are being seen as an attempt at strengthening its G Suite. The Hangouts Chat is meant for the people in a team to collaborate easily on the go.
Live....and Let Live!