I think there's a place for both, but env vars can make things really annoying to troubleshoot. Already, I often print all env vars before running automated commands and it can be a mess to dig through. Culling down environment variables when spawning a subprocess is difficult. Bad flags can error immediately if you made a typo. I've often misspelled an envvar and its hard to tell it did nothing (I think I saw a recent bug where trailing white space like "FOO " was the source of a years long bug). `FOO=BAR cmd` is also weird for history (although that's mostly a tooling issue).