Hyprland has been a premier for awhile in stably exploiting the Wayland technology for user use.
Now, KDE has come along and has taken on a new level of advancing WAyland with additional user friendliness. KDE is also freeing developers needs for some-any-many additional desktop Wayland usability add-ons as it is built-in for user uses. Pipewire needs are built-in as well.
I do not see these 2 products as a battle; rather I see them as a choice. This choice is similar to what is in the PUP community with Openbox and others in the OOTB builds for X11 over the years.
A major difference between Hyprland and KDE is the way hot-keys are provided according to mouse location for 'in-focus' versus 'out-of-focus' when hit. KDE's implementation could be viewed as a better hot-key solution depending...
FYI