A few months ago, I bought a CB radio for my truck after decades of being off the air. Since September 2021 (IIRC) CBs can use FM mode, and this one has that capability. To my surprise, it also has the capability to use "privacy" (a misnomer, but whatever) tones.
Yes, PL/DPL makes FM CB useful now. Unfortunately, as
@KK4JUG pointed out, we're about 20 years behind most other countries.
So, it's now a radio that transmits in FM mode on a free, channelized service, in essence just like FRS. Unlike FRS, however, it can operate at 4 watts, is allowed to have external antennas, and has 40 channels instead of 22. There's no technical reason why FRS would be a better choice for family/friends traveling together or camping/whatever.
UHF uses a much smaller antenna. It's easier to have a somewhat efficient UHF antenna on a hand held radio. Not so much for CB. Hand held CB's with a reasonable size flexible antenna is going to be a really poor performer with very little ERP.
What most users want is a hand held radio with non-obtrusive antennas. FRS fits that very well. For those of us that grew up when CB was the only real 'license free' option, long antennas were not a great option and broke frequently.
The main impediment to widespread adoption of FM CB for "family" communication, as I see it, is the cost of entry. CB radios can be had fairly cheaply, but not as cheaply as the "bubble pack" FRS radios. Is there any chance that FM CB could eventually take a significant portion of the FRS market? (Full disclosure -- I don't really care, I'm just curious.)
I highly doubt it.
FM on CB uses really narrow bandwidth, 8KHz. FM in the FRS band is permitted to use 12.5KHz. That extra room gives better audio fidelity, which is important in a hand held radio with a small speaker.
The antenna issue has always been the sticking point for average Joe citizen. To make use of the 4 watts FM on CB, you have to have an efficient antenna. That gets to be pretty big, and a lot of people don't want that on their car/van/truck, etc.
CB uses a wavelength of around 36 feet (where the "11 meter band" comes from). FRS wavelength is about 2 feet. That not only means the shorter antennas to be efficient, it also means it penetrates buildings and cars better. So using an FRS hand held radio inside the car, while less than ideal, actually gets enough signal through the windows to be useful. Trying to use a cb hand held in the car, even with a short antenna, is going to suck.
FM CB would have been a great thing 20+ years ago, but that ship sailed and it isn't coming back. There will be those that adopt it, and it has its place in the communications toolbox, but it's not going to revitalize CB, and it's not going to replace FRS/GMRS.