Atuin is trying to solve this one too :)
By default it won't save history containing AWS credentials, slack credentials, etc. The list of things to ignore is configurable with regex
While it's not difficult to avoid putting credentials into your shell, ik most people will just paste things in that perhaps they should not
With fish's shell history for example I can just type 's' and it completes it to 'ssh user@host.tld', because that's the last one starting with S I used. If it's not right, I can type it up to 'ssh' and press arrow up to pick the ssh command I want.
Then I might remember that I did this fancy jq thing once to parse a field in a specific way, I can easily use Atuin to look for it with a nice text-mode UI just by pressing C-r and typing 'jq' as the initial filter.
Another use case I feel pays off is complicated one-liners where I need to do something similar but not quite the same again - good starting time saver. This depends on you being a mostly cli kinda person obviously, if you instinctively reach for excel over awk then ymmv.
<my> | <cool> | <one liner> # add script for this
The # comment makes it easy for me to search through my history to find one liners I want to use to build a shell script from
...but if you effectively have this in emacs, I can see why you wouldn't need it in the shell.
Oh, also, I use tmux to split my terminal and do separate things in each one, so I like that atuin consolidates all the histories from my separate panes.