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Yes, it's terrible, it's plain text only, it has no sane file transfer, it has no log integration, it's not particularly newbie-friendly... but nothing else seems to be strictly better in enough ways.
And at least I already know how it works and so do most FOSS devs. 
To everyone saying Discord this Discord that: look, I'm in more Discord servers than IRC channels these days, I get Discord. I still think it's not the right option for this project, and enough people I care about would never use it.
One thing that *might* end up happening is dev chat on IRC, user chat on Discord, or something along those lines.
Discord will be the best free option you are going to get with all the integrations/bot capabilities it has until you come up with something better. I don't see the point spending too much time focusing on it. Do you?
I already explained the problems with discord. Not everyone wants or can use their client, and they ban everything else on paper, and there is zero data portability.
perhaps IRC with a "nice" frontend (like an instance of http://thelounge.chat ) to make it more accessible? there's also XMPP, but that's somewhat complicated to set up (and suffers from similar issues as Matrix)
I already run an XMPP server and yeah it's not great.
it might not be what you’re looking for but I don’t think Telegram’s group chats are an afterthought. I know of many FOSS projects successfully using supergroups to coordinate development; they’re fully featured enough and the fine grained admin settings are pretty powerful
if you haven’t checked them out recently you really ought to. plus there are matrix and irc bridges you can use to allow people to interact from other platforms
an xmpp based server? more configurable than irc, but maybe you would have to make many things manually.
clients, that results in a lot of other problems with crypto/features/etc.
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Requirements: open protocol, data portability, cloud hosted (but option to self-host).
