The Chili’s biggest asset, and unfortunately their biggest problem, was John Frusciante
He was the defining highlight of BSSM, then went off the reservation
One Hot Minute was a commercial nightmare
Kiedis and Flea recognised they needed Frusciante back so they went and saw him in hospital IIRC
Californication is a tremendous album, with a band revitalised by the return of Frusciante
However, realising Frusciante was key to their ongoing commercial success, Kiedis and Flea acquiesced to Frusciante in terms of song writing direction and the sound they developed. I’ve seen Kiedis admit this in interviews. You only have to listen to Frusciante’s solo stuff to hear the link.
The direction Frusciante was going in was not traditionally “chili” style. No funk, electronic tinged, almost ethereal. I think that’s what finally killed them off. By the time Frusciante left, probably for good, the damage was done and they’re a bland, turgid, dad rock band.
Plus they should have stayed on the drugs.