Both have pretty terrible UI but so long as one uses magit, git comes out way on top.
The data models are different and suffer different problems. A main issue with git is that it is stupid about file copies and renames. An issue with hg is that it doesn’t work well with long running forked histories (i.e. like git branches) because it stores the set of revisions of a file as a list of blocks of “complete file” or “diff from previous version in this list”
Both have scaling problems to large repos and algorithm/data structure problems which cause too many operations to be e.g. O(size of history) at least. I suppose this is better than Darcs’ model of “commit on Friday and hopefully it will be done by Monday.” If hg we’re naturally good at scaling than e.g. Facebook wouldn’t be putting so much effort into trying to make it scale (e.g. using inotify instead of looking throughout the tree for changes (which I think shouldn’t count as any vcs gains from this), having a mergeless history, rewriting a ton of hg in rust (git was always partly in C and there is now also libgit2)).
The thing that makes me most sad about hg is the lack of a really good (ie good and emacs-based) ui.
I’m all for different vc systems being developed and I think it would be good to see some real innovation potentially break up the current git-hg hegemony.
I think there are lots of good things about fossil (e.g. using an actual database that is going to scale well and avoid data corruption instead of using a specialised data structure that is hard to change and likely not so corruption resistant or battle tested or scalable but maybe let’s your data structure be “faster” for certain operations)
Another interesting vc system being developed at the moment is pijul which can be simply described as “like darcs but fast and more likely to be correct”. It feels a bit like it’s fitting in with the current trend of CRDTs, although it’s core data structure is not a CRDT as that would imply that all merges have some deterministic resolution (ie merge conflicts do not happen) and that is not the case, instead files are allowed to be merged into a first-class conflicted state which can then be resolved by later patches.