>1) If they’re a local small business (eg. Restaurant, flower shop) or solo creative business like a photographer or videographer, just do Squarespace. Wordpress is way too complex for their needs and they will easily shoot themselves in the foot.
This (with a slight modification).
I built websites back in the Web 1.0 days. I know how to use HTML, CSS and a bit of javascript. When I needed to build a "brochure" site for my professional services business, I could have done it from scratch, I could have waded into the convoluted and plug-in dependent mess that is WP, or I could go to a simple tool like Squarespace or Wix. I am capable of learning anything I needed, but the real question is: when I need to update a page, do I want to relearn all that stuff I forgot because it isn't my day job?
When comparing Squarespace to Wix, I realized that Squarespace doesn't have backup and restore capability. That is a mindblowingly huge hole to me. So I went with Wix. Yes, I am "locked in" to Wix. If I wanted to go to another solution, I could pay someone pennies to replicate my existing site.
Contrast to my experience with WP. I inherited a WP site with the non-profit I work with. I ended up getting them to pay godaddy to manage the site and the SSL because I don't have the time to deal with it. I dread the day when the next WP upgrade breaks the janky WSIWG plug-in (elementor I think), which already doesn't work properly on one of the pages, so I have to edit the HTML. As soon as our long contract with godaddy expires, I am paying someone to replicate the site in Wix.
Like you pointed out in #3 above, I guess there are some applicable use cases for WP, but anyone who doesn't need more than a brochure site is ill served by that choice.