I have a compromise setup but it seems to work ok. Two MacBooks, one pro, both M1.
One is plugged into a TS3+. The other is plugged into a USB-C dock to get Ethernet and a USB-A input, but I don't use the video out. Instead, I run a Thunderbolt to DP cable from a second TB port to the KVM switch.
I use this KVM ordered on Amazon: Cable Matters USB 3.0 KVM Switch DisplayPort 1.4 for 2 Computers with 8K@60Hz
Pros: preserves 5K@60Hz for both machines, switches keyboard, mouse, and a webcam just fine.
Cons: no hot key switching, another remote to lose, no EDID emulation so the computers fall asleep when they're not active, switching takes a bit. Sometimes a machine doesn't wake up when I switch back to it so I have to fiddle with cables, but that's been pretty rare.