It fails all the time for inexplicable reasons. Eg. one computer has two users signed in -- doesn't work, silent failure, no error message.
Computer not yet booted -- does not work, no way to type in the login password. (Granted this is hard to solve, but would be what I need to get away without a KVM switch)
One computer crashes -- your second Mac is now mouseless for 5 minutes until some time out occurs.
Multiple monitors stacked vertically: You can only move the cursor across one of the borders, the other one doesn't work.
Using a 3rd party mouse with extra functions: can't use them or scrolling won't work anymore.
The problem is that when something fails, there is no error message, no log message, no indication what you need to do to make it work.
As with all Apple solutions, it's a seamless experience if it happens to work, but if it doesn't work you'll be pulling your hairs.