Performance is not an issue in most docker setups you would ever use, correct.
I think it mostly comes down to what layer of abstraction you like working at.
But it doesn’t have system-level dependencies. For example, in systemd I can wait for a network interface to be up and have an IP assigned by DHCP. As far as I am aware, docker compose knows about the docker network and its own containers, but not the system more broadly.
Also, you will likely want it to run for a long time, so something has to trigger the docker-compose process to start and restart it. You might want it to restart in case the OOM killer knocks it over. That daemom stuff is what systemd is good for.
I should really put my homelab setup somewhere.
Unnecessary overhead gets introduced with docker, for example, now you need to depend on a container-registry + the authentication to pull those images from the server + other stuff.
This seems like a perfect application of the init system.