> with the only "downside" being a small unusable area in the center where the camera/mic/other sensors are placed.

The notch is wider than need be. As far as I can tell the main reason is aesthetics. But I agree, it is better than nothing

Notch: Camera, ambient light sensor, and a camera status LED

Dynamic island: camera, infrared camera and flood illuminator, proximity sensor, and an ambient light sensor... also half the width and height