It's fantastic for websites and servers, and LLMs are very good at generating it.
The primary downside of Rust is the long compile times, especially with macros (serde, etc.) If that can be fixed, it will be sublime.
The type system and error handling ergonomics make it easier to write defect-free code than, say, Go or Java.
Simple servers are request scoped and mostly feature linear request handling, so you're writing simple vanilla Rust without the complex pointer semantics that you would use for systems programming. The async pieces aren't difficult either.
Serde-annotated structs are the best serialization/deserialization story anywhere. It integrates super ergonomically into Axum and Actix to make writing request handlers a breeze. They're super easy to read, too.
Compared to what? I see ASP.NET Core and Quarkus very competitive. The virtual threads in Java are great, paired with structured concurrency IMHO.
If I have to go microservice or API, I would choose FastAPI for fastest delivery and if I have to rewrite, Go, unless it is massive scale and scaling horizontally becomes a headache I would not consider Rust/C++ for this.
All the backend, etc. for the company I have been working for is C++ for the fast parts but all tools around are Python (with NiceGUI and Flask mostly).
I think the combination is quite powerful, btw.