I have a Linux PC that my kids mostly use, running Wayland sessions. It definitely works with Steam and Krita, although I admit that I do not know if all of Krita's features work. They have played Portal 2, Minecraft, and a few "windows-only" games with Proton.
My biggest gripe is that if you have more than one window of Chrome open it gets VERY slow. Multiple tabs are good, multiple windows are not.
Chrome regressed on Wayland after changing the default rendering path on Linux. The slowness seems to be a problem in getting proper vsync, and there are multiple cases where it was/is causing issues.
Chrome doesn’t even run on wayland, unless compiled specifically on a new enough branch so OP talks about the version running inside XWayland. It can possibly be a bug in the specific compositor’s xwayland implementation or even in chrome.
Also, your special ability to try out every compositors must be really useful.
My biggest gripe is that if you have more than one window of Chrome open it gets VERY slow. Multiple tabs are good, multiple windows are not.