It seems like Unreal is a terrible fit for smaller projects where visual fidelity isn't a primary concern. Would I ever build a roguelike, city builder or 2d platformer in Unreal? Wouldn't something like Godot or Unity be a much better fit?

AAA level graphics in nice, but there are many game genres that have visual fidelity very low on their respective list of concerns. With the rise of the Steamdeck, I'm sure there will be a rise in efficient portable-friendly games that can get that 7 hours of battery life. Not sure I would ever consider Unreal for those types of projects.