Really, as long as you have mobile data, there's no difference between supporting SMS encryption and not - you can only talk encrypted to other Signal users anyway, and other Signal users will get your non-SMS-routed encrypted message just fine.
The use case for Signal-encrypted-SMS is continuing to send encrypted while you have no IP connectivity, but thankfully that is becoming a rarer corner-case. The last time I had SMS but no IP was on a cruise ship.
> I expect it to have high battery consumption and an unreliable user experience, but would be fine with it if it comes with a warning and only runs in the absence of play services
You don't get high battery consumption, or unreliable user experience, or a requirement for Play Services with pure SMS encryption.
SMS encryption is actually quite a tricksy problem. TextSecure's entire purpose (over bog standard IM OTR) was to solve it, providing individual message-level forward secrecy. This is why it's so perplexing to me that they dropped it (I understand that part of the reason is that iOS simply does not allow it)
If we had to choose between them, I'd take Matrix in a heartbeat, but I just let them co-exist.