I haven't really played around with VPNs to make the comparison. Tor breaks for a significant number of sites, but it's still a pretty small minority; "only works for a small number of sites" is a comical untruth.

If Tor breaks more sites than VPNs do (which I think is likely), I think it is because Tor is secure. It is easier to do malicious things behind Tor because you have, for all intents and purposes, an unbreakable shield of privacy while you are doing those malicious things. And so, site operators tend to block it more readily than they do VPNs.

Whether you want to make the tradeoff in favor of convenience or genuine privacy is, of course, up to you. It's not surprising to me that the Lemmy userbase is more or less unanimous in favor of convenience. Of course it is fine if you want, but you don't need to misrepresent how things are to make it the only possible choice.

I think you're exaggerating. Disabling JS breaks way more sites than an exit node's IP.

Edit: I meant that "small number" of sites is an exaggeration, not that exit node blocking is uncommon.