I used neovim because it felt way faster by default. I think treesitter runs circles around what classic vim is using to highlight syntax. That said, I never used both beyond basics, thus no horror stories either.
Tree-sitter is more performant for sure, and its potential for easier text objects is nice. However, Vim's syntax engine is more than good enough for non-complex highlighting (and many people don't want complex highlighting) and, while I don't have enough tree-sitter knowledge to explain this myself, I've seen examples of Lua versions of Vim plugins where tree-sitter is unable to handle some of the regex-based text objects present in the vimscript version.
As far as really cool uses for tree-sitter go, ast-grep is a fantastic tool. Of course it's a standalone program, so it doesn't need nvim to make use of it.
I haven't noticed any performance issues in vim to start with. It was fast on a 75MHz pentium for me. The syntax highlighting, same. No issues. I don't always use that though because I can't be bothered to set up anything much past the basic config.