Unless you're teaching your kids & grandparents how to sysadmin linux and don't think they want to watch any videos online (browser support for accelerated video decoding remains a giant disaster on linux), then sure? And also that they want a desktop instead of a laptop.
Low-res video can be software decoded fine, but once you start pushing 1080p or 4k it's not going to go well at all.
Of course there's also used options, which is also a good option for ipads and such that would still be a much better option than this for a non-techy user.
The Rpi 400 looks fun, but it's a tech toy for hobbiest electronics usage or general hackery. Not a generally good computing appliance for the masses.
Fun if you're into it, incredibly confusing if you're not. Which also means amazingly ~7 years later this XKCD is still relevant https://xkcd.com/619/
It does word processing, browsing, printing etc, extremely well. Streaming (Netflix etc) is indeed troublesome, at least directly.