I understand it's a given to lose the purchases. I'm semi-dreading the prospect of being presented with an error message preventing the creation of a new Google Account for an email address previously under Google Workspace. This may be irrational...but it seems like a case where Murphy's Law would rear its ugly head, and typical of the "gotchas" that these legacy accounts have had to deal with when interacting with certain Google products.
And I guess the worst-case downside is that I might need to create a new Google Account with a different email address from my primary email address just for the phone and Google apps, which is awkward but isn't the end of the world.
You might miss out on some things like Calendar/Gmail, but a free Google account using an external email should preserve things like purchases. Failing to do that would seem likely to push them down the path of lawsuits and PR fiascos, and also embolden what's likely a disproportionately tech-savvy (and influential in making purchasing decisions) audience fitting the demographic that set up a domain for email 10+ years ago.
though I advise leaving it for a week or so after deleting it as it was pretty glitchy to begin with
I have been plagued by account problems for years, though, having signed up for services like YouTube with a personal email prior to creating the same email address in Google Workspace. I recommend avoiding it, and just using a free Gmail account for basic usage of Google docs and YouTube and your phone.