I mean, it's probably niche if you consider all software ever, but the tool has been around since 2013 at least (and before that under a different name, OSM Server Side Scripting/OSM3S), with a lot of ecosystem tools and documentation (in multiple languages) existing all over the place, I wouldn't say it's very niche in the mapping community.
I agree, GPT3.5 has been working insanely well for me when making overpass turbo queries. I guess there's lots of training data in the dataset for it. Made a quick 10 liner that takes in a bbox & search prompt -> GPT3.5 -> overpass turbo -> geojson
In my experience it seems like prompting for older technologies works much better on large LLMs, i guess it makes sense considering that there is probably more crawlable documentation out there