I use WSL2 as my daily driver on a laptop. I find CPU performance to be very good if not quite equal to the native Linux setup I had previously. I don't run IO heavy tasks daily, so no comment on that. I do develop things that require a much newer Linux kernel (eBPF/XDP) so I also have a couple more VMs on Hyper-V, and finally remote machines with proper NICs (that I wouldn't really be able to have on my laptop anyway) - yet still, the whole setup feels very convenient and snappy.

I wouldn't run a production server on WSL, that sounds like madness. It is, however, a great development environment for me, where I have almost everything I needed from the Linux side, along with allowing my laptop to do 8 hours on battery on Windows as opposed to 3 on Linux, sleep working properly, wifi not needing an occasional reboot to start working after wakeup, etc.

So my anecdote vs your anecdote: it works (great) for me.