I've been to GC twice since it reopened and had a great time (FWIW, I probably had 25 trips there pre-Covid so I have pretty good perspective). A couple of things.
First, it was closed for a long time, obviously. But Cayman was relatively unique in that their early aggressive response to Covid successfully eliminated it domestically and they were able to resume normal life (inside a bubble). That, together with the fact that they get so much revenue from financial industry, explains pretty well why they took so long to reopen. It's not like other places where they always had "domestic" Covid so it wasn't like reopening was going to really change things. They had beat it, and so they were understandably slow to reopen the borders and go back to social distancing, etc. Just sayin' they had a different sent of considerations when it came tor reopening than, say, Turks, Mexico, or Belize.
Cayman has also been slow to get fully back up to speed because of the large number of DMs, hotel workers, chefs, etc. were expats on work permits. Many went home during Covid and there's been a big backlog of applications to get people back and staffed up. It's getting better, but it's been slow.
On the plus side, GC seems to be thriving (I suppose that's a negative for some, but that's not a debate I want to start). Construction was booming and my impression was that a lot of projects that had languished pre-Covid got back on track and finished. For example, the airport was 100x better and everything seemed to have a fresh coat of paint.
The diving was still great. As others have noted, it ain't the cheapest place but if that's not a deal breaker, it's still a pretty awesome place.