One major downside is consumer usage seems to still need DCR with this. I think this could potentially be addressed by existing consumer OAuth providers (Sign in with GitHub, GitLab, Google, etc.) adding support for registering static MCP clients/servers, clients shipping their static client IDs inside them, clients allowing users to sign in with GitHub/GitLab/whatever IdP, and letting the user self-manage connections on the IdP's site.
Overall, XAA/EMA seems vastly superior to DCR from a security perspective (and also usability too, since users don't have to configure as much!). The concerns I have are also much easier to address and have way less security impact than with DCR, since attackers don't get to register their own clients anymore and there are less pitfalls for MCP server developers.