I'm somewhat hopeful the growing ubiquity of especially Jupyter notebooks leads to better, more universal tools for literate programming. Notebooks have always been a form of literate programming. Jupyter and its underlying formats are now ubiquitous enough with a lot of strong IDE support (across a variety of IDEs) that I'm hopeful a better convergence as a "general literate programming platform" from the notebook side may just be a matter of time. (Other than that a lot of strong LP proponents so far seem to mostly be oblivious to the happenings in Notebook spaces and vice versa, despite there being so much cross-over.)
Yes I agree (and share the hope). In fact, earlier today I was thinking about Peter Norvig's "pytudes" (https://github.com/norvig/pytudes) as good examples of literate programming — and they are notebooks. Also, last weekend I picked up some code I had written a few months ago, threw it all away and started writing it in a notebook (Colab) precisely for this "literate programming" reasons.
There's also "nbdev" (https://github.com/fastai/nbdev) which seems like it should be the best of both worlds, but I couldn't quite get it to work.