I use AdGuard, Wipr, and uBlock Origin Lite on my iPhone, and uBlock Origin on desktop.

I swear there are little gaps in each that the others get, but they're very minor. When uBlock Origin Lote recently released on iOS (within the last year), I noticed a few more things blocked. I also prefer the custom element removal or uBlock and can reuse my desktop filters.

It's free, so I'd recommend adding it as an addition to the bunch.

Seconded for Wipr. It's my favorite adblocker I've tried yet (although 1Blocker is also really nice). And if the author sells it to some creepy company, the Safari API means that the new owner can't spy on my viewing. I'm not sure how it could be materially improved by using less privacy-respecting APIs.

I think the limitations are similar to the manifest v3 issues that the Chrome version has. Specifically, you (the ad blocker) send the browser a list of sites to block, instead you blocking them yourself. That means it's way harder to do clever things like scriptlet injection to find ads and get around adblock detection.