https://www.wired.com/2011/06/thunderbolt-cable-teardown-rev...
Thunderbolt 2 had the same compatibility issue in that it was the same connector as Mini DisplayPort but couldn't run over a standard DP cable. That was pretty minor since it's not like everyone has a pile of loose DP cables sitting around.
On the other hand, your average consumer never uses a Thunderbolt device to begin with on account of them being significantly more expensive than other accessories. They'll likely never run into this even with it using a USB-like cable, and the people who do need TB will figure it out.
Thunderbolt displays can do hubs at full speed, the 5K LG Ultrafine has 3x USB 3.1 gen 1, which IIRC means up to 5 Gbps (vs 480 Mbps for USB 2).
Not sure why your comment was marked [dead] but I just vouched it so it should be back.