I use Luau with my Unity game for all gameplay code (60k+ loc so far). I agree the docs could be improved, especially for custom integrations. The new type system + LSP aren't great together yet either, and I've been a little worried about the direction since zeux left the team.
But otherwise I really like it. My Luau code hot reloads almost instantly while the game is running, and my C++ project compiles quickly when I update it. I like that it provides sandboxing if you want to support modding. And there's an active community of people on the official Discord, which is better than nothing.