True.Most people are not good, not evil and not very lawful. Normally that would make most people TN, but D&D has been explicit in that TN is not for normal people, it's "very rare" and intended only for inane champions of muh balinse in everything. Which leaves CN as the only remaining alignment for people who are unwilling to commit themselves to bullshit.
But unfortunately not many players are willing to give CN a chance and play this alignment in a mature manner.
Still, a CN does not have to be a dishonest, treacherous, backstabbing and larcenous prick, but that's how most players play this alignment.
Most people are stupid, duh.
In truth, you won't find "chaotic evil people" this side of the Abyss. You'll find "a little unruly and with a nasty streak". Same applies to other alignments, too. Any outliers, from serial killers to holier than thou paladins, tend to provoke revulsion and contempt.