Insert performance could be even better, iirc for BTree Indexes monotonic increasing values are better than random ones, but feel free to correct me on that ;)
Using a monotonically increasing PK would cause pages in the index to be allocated and filled sequentially, increasing throughput.
Using random UUIDs would lead to page-splitting and partially-filled pages everywhere, negatively impacting performance and size-on-disk.
As with all databases, measure before you cut.
UUIDv7 support unfortunately didn't make it to Postgres 17, since the RFC wasn't completely finalized yet by the time of feature freeze (April 8), see discussion on pgsql-hackers:
https://www.postgresql.org/message-id/flat/ZhzFQxU0t0xk9mA_%...
So I guess we'll unfortunately have to rely on extensions or client-side generation for the time being, until Postgres 18.