Of course it did not. The flower children, the back-to-the-landers, the bikers, the free love communers all remained a tiny slice of the population (and a shrinking one by that time).

What the late 60s/early 70s US counterculture had going for it was a kind of credibility as "the new thing". It was not "the culture" (and it never really became it without mutating heavily), but it was interesting to many people who did not participate in it. It remained a counter-culture until it had changed so radically (and this was years after Coco-Cola first tried to ride the hippy chic train), and then, indeed, it was no longer subversive in any meaningful way.

As actor Peter Coyote noted of that era, that particular counterculture won the culture war in the long term - you can find yoga classes and wholewheat bread in almost every small town in the USA now, our attitudes towards sexuality and the environment and women and racism have been fundamentally altered - but it lost almost every political battle that it was concerned with. Wars continued, economic inequality, corporate control, the military-industrial complex ... all continued unabated.