> I always thought AC’s primary benefit was its transmission efficiency??
There are many factors involved, and "efficiency" is only one. Cost is the real driver, as with everything.
AC is effective when you need to step down frequently. Think transformers on poles everywhere. Stepping down AC using transformers means you can use smaller, cheaper conductors to get from high voltage transmission, lower voltage distribution and, finally lower voltage consumers. Without this, you need massive conductors and/or high voltages and all the costs that go with them.
AC is less effective, for instance, when transmitting high power over long, uninterrupted distances or feeding high density DC loads. Here, the reactive[1] power penalty of AC begins to dominate. This is a far less common problem, and so "Tesla won" is the widely held mental shortcut. Physics doesn't care, however; the DC case remains and is applied when necessary to reduce cost.