I misjudged his talent, even if he has been a pale immitation of himself for a long time now.
I agree that he works hard and applies himself, but I do feel he lacks intensity in everything he does - with the ball and without it. Quite a similar character to Aubameyang actually in my view - he has to be prodded to work really hard, but even then lacks that bit of bite and aggression. And when the prodding stops or things get easy, the hard work drops a bit with it. I think they're both entertainers and would have loved Wenger's Arsenal post-Invincibles, but not Arteta and not most (if not all) top clubs around now.
And in Pépé's case, I also think it's clear that his understanding of the game is a level below the guy he's in direct competition with, a certain Bukayo Saka, in just about every aspect of the game too. It's sad seeing him so low on confidence, especially this pre-season. I really hope he can go to a club and find himself again.