> is that OBS and screen recording simply do not work
That is not true (at least in sway). You need the xdg-desktop-portal-wlr installed and running for it. Gnome and Plasma have similar desktop portal utilities, but I'm not sure they fully support the screen sharing wayland extension.
The downside is that once a command is bound it cannot be reused: so if I wanted to have OBS and simplescreenrecorder that both use “meta+S” to start recording then that’s not possible.
The biggest issue I have with wayland is that OBS and screen recording simply do not work, I’m not sure if there are effective workarounds but a consequence of one program not being allowed to spy on another program is that you can’t record the screen.