It used to be the case, and I also avoided using OsmAnd in cities for years, but my recent attempt was far more successful. I think they finally fixed their search, at least I didn't encounter any issues with it lately. It's still definitely worse than most apps for hotels, stores, restaurants and so on, but is much less laggy anymore, and is indispensable for biking and pedestrian navigation as it shows every little OSM detail, unlike most other apps that focus on businesses.