Too slow for daily use, and not really worth it if you're just trying to keep your ISP or other low-effort groups from annihilating your privacy.

Because it's horrendously inefficient to bounce your traffic all over the place. Most people won't trade a 10x slowdown for abstract privacy gains.

Because Cloudflare and Google Recaptcha will lock you out.

I thought Tor had exit nodes set up by the government. Is this not true? Serious question.

Yes, of course they do. Most governments probably run some tor nodes. The privacy gamble is that you only have privacy if the entrance node and exit nodes are controlled by different operators.

Bandwidth and latency being more important than perfect privacy in some cases.

Have you ever used Tor? It's incredibly slow.