Twelve licences is a shameful figure after several years in existence. It should be telling us, and the NYDFS, that it isn't working. Regulation should be there to help people, not outright deter them.
Is that a problem of the state or the demand there not being worth digging into? If it was worthwhile, I'm sure there would be a whole lot more licenses being obtained by crypto related entities.
New York has always been a tough and expensive state to apply for licenses, not just for crypto related entities. The difference is that the demand is the main factor deciding how many of them will be granted a license.
If you know for sure that there isn't much to gain there, why would you even bother applying for a license? It doesn't surprise me at all that there are only 12 licenses handed out, it's not the state to be blamed.