It's a nice idea but I've literally never seen it done, so I would be interested if you have examples of major libraries that do this. Abstractly it doesn't really seem to work to me in place of simple logs.

One test case here is that your library has existed for a decade and was fast, but Java removed a method that let you make it fast, but you can still run slow without that API. Java the runtime has a flag that the end use can enable to turn it back on a for a stop gap. How do you expect this to work in your model, you expect to have an onUnnecessarilySlow() callback already set up that all of your users have hooked up which is never invoked for a decade, and then once it actually happens you start calling it and expect it to do something at all sane in those systems?

Second example is all of the scenarios where you're some transitively used library for many users, it makes and callback strategy immediately not work if the person who needs to know about the situation and could take action is the application owner rather than the people writing library code which called you. It would require every library to offer these same callbacks and transitively propagate things, which would only work if it was just such a firm idiomatic pattern in some language ecosystem and I don't believe that it is in any language ecosystem.

I’ve written code that followed this model, but it almost always just maps to logging anyway, and the rest of the time it’s narrow options presented in the callback. e.g. Retry vs wait vs abort.

It’s very rarely realistic that a client would code up meaningful paths for every possible failure mode in a library. These callbacks are usually reserved for expected conditions.