A unified data governance solution that helps manage, protect, and discover data across your organization
The only benefit litigation hold provides is the ease of management, especially in "bulk" scenarios. It's very easy to apply/remove at scale, but as you mentioned above, it also has some drawbacks, and cannot compare to "modern" alternatives across M365, which are both more granular (i.e. can target specific items) and can include data across other workloads.
Still, if you need a simple solution to retain mailbox data, you can use it as alternative to retention policies and eDiscovery holds.