I personally think using it was the right call regardless (the alternatives are worse in the long run), but it's such a massive upfront investment, I couldn't recommend it.
One thing though:
> tools that change their behavior based on files in one of the parent directories
You mean like git? I agree with your general sentiment but you're backing it up very weakly, with essentially irrelevant things. Terminal interactivity is not a bad thing; TUI software is built for humans as well as machines and well behaved components will detect when they are not in a tty.