I admit I never tried the wired mode on iOS. Maybe it doesn't propagate the link state?
* It disconnects more than once per day, requiring me to enable the wifi hotspot again on the phone
* The phone gets very hot
* It is slower than usb tethering: In my measurements, I get about 4MByte/s over USB and around 2MByte/s with wifi, though I'm not too confident in the results. According to the mobile provider, I should get 10.
EDIT: A fourth one is that the wifi hotspot leaks my first name and phone brand to everyone in the vicinity.
My mobile is an Android device, but I believe these reasons all still apply:
* lower power consumption for both devices with wifi off
* significantly lower & more stable ping. i drop from ~44ms with a lot of jitter (a significant number of 120ms pings) to mostly stable <35ms, with a very occasional high ping.
* better-re-sharing. if i am hosting a bunch on a phone, with USB i can bring a mobile travel router with me that has much better range & works with many more users. (it's possible that wifi extender mode may emulate some of this advantage, but it would almost certainly double the jitter problem)
You can use your mobile as a Wifi-to-USB dongle and dont have to care about wireless credentials which is very nice. This is not possible with a wifi hotspot because in Hotspot mode you cannot use your wifi in parallel.
I do use that with a mobile router that supports Android's usb-cdc-ethernet adapter to forward hotel wifis when i only have one code for a single device (mac address). Or when the wifi gadget you want to use doesnt work with the captive portal. Fast and hassle free.
Wired tethering always worked instantly. Well, until now sadly :(. I tried to do this the other day and I just figured something was bugged, but I didn’t realise it is an iOS14 issue. Guess I am stuck with the wifi hotspot for now when I am out and about.