I got used to it pretty quickly, and I've had press-Alt mapped to Esc for many years.
It was always annoying, and the 16" with a physical Esc is much nicer.
Now all Apple has to do is add some haptic feedback to the damnable thing and I'll actually like it.
The only advantage to a virtual Esc is getting that piece of real estate if you don't happen to want one, and as has been pointed out elsewhere, Escape is an important affordance in macOS-land, even if you aren't a Vim user.
The important report here is a process freezing both the UI and the touch bar, and therefore option-command-escape being unavailable to bring up force quit. That's obviously bad, and I would call it broken. Edge case but an important one!
This is just a quibble about whether it's worse enough to deserve the moniker "broken", though. I'm not personally attached to that, just want to point out that it does in fact break an important action in the core vocabulary.
No it doesn't. All that it indicates is that there was a preference for it by part of their demographic. Again, developers are in the minority here. Most Macbook users don't care and it was an easy concession to make from Apple.
If this has never been a problem for you: nice! But it's been so much of a problem for everyone else, and they've spoke up about this so much, that Apple undid that decision.
There is literally nothing that the physical key does that the virtual key on the Touch Bar can't do.