There are also strong downsides though, one is privacy and future cloud lock-in. Zigbee is fully local. Previous Thread standards added the option for NAT64 so that Thread devices can access the internet and there were some Thread + Matter devices that already require internet access for full functionality (IIRC some Nuki smart locks, but I might misremember). However, Thread 1.4 also adds support for Thread devices to get a globally routable IPv6 address. The Thread 1.4 whitepaper is pretty blunt about what this enables:
Simplified Cloud Integration: Thread devices can now seamlessly connect directly to cloud services, enabling remote control, monitoring, and over-the-air firmware updates.
https://www.threadgroup.org/Portals/0/Documents/Thread_1.4_F...
The fact that Thread and Matter are strongly pushed by Google, Apple, etc. should tell you enough.
Now, a TBR may simply allow you to disable NAT64 or globally routable IPv6 addresses (e.g. Home Assistant's addons), but many consumer implementations don't. E.g. the Apple TV is a Thread Border Router and does not allow disabling NAT64, so Thread devices can access the internet, send analytics, and can be cloud-controlled.
Also, the ecosystem is still pretty immature, as a result of which you can encounter issues, typically resulting in unstable device connectivity. E.g. TREL does often does not work well. Apple has some hacks to fix most of the issues, but it only works well between Apple devices. So it's generally the best to avoid combining multiple TBRs into the same network.
Better than what already exists and is deployed? I dunnno, hardware already in use always beat "hardware conceptually better but I don't have it", that's why Zigbee is better, for me. Protocols much like everything in the world, isn't correct/incorrect or universally "better", it's all down to use cases.
Personally, as someone who started to rely on IKEA providing Zigbee devices, Thread is obviously worse, because 100% of the devices I have are already Zigbee and not Thread.
It's a vastly better system and the transition period is so smooth because the smart home companies have been deploying the thread hardware for years before anyone started using it.
Also worth mentioning that many modern Zigbee radios can also be Thread thread radios using different firmware. There are even multi-PAN radios that can do Zigbee and Thread at the same time. Some smarthome hubs use multi-PAN (e.g. Homey Pro), but it's generally recommended against now because of lower reliability.
The same applies to devices, e.g. some of the new IKEA devices work over Thread or Zigbee (Zigbee pairing is triggered using a non-documented sequence, presumably they added support for TouchLink). Or e.g. the Aqara FP300, which can be flashed with Thread + Matter or Zigbee firmware. It works because the same radio can be used for both protocols.