When I read this, at first I thought "well DUH it doesn't have a desktop OS or various desktop utilities built in, its a microcontroller!"
Then I realized for a lot of people now, their first led blink "hello world" was possibly not on a microcontroller at all. To me, the idea of wanting a mouse and keyboard for a microcontroller to set up wifi seems silly, but to others, they just haven't experienced the alternative.
There is great support for various wifi security standards for the ESP though, you just need to create something equivalent to how a chromecast connects to the internet for the first time. bootstrap an AP, connect to a portal, configure on the portal, reboot and connect to the actual AP.
OTA upgrades are quite useful.
It's not a general purpose PC with I/O tacked on, like a Pi is, but more like the reverse: I/O and a wifi/bluetooth chip that also has a small (but powerful) processor.
The big benefit to ESPHome is it handles all the 'boring' stuff like Wifi updates, timers, and API/MQTT glue code. I still write one-off stuff in PlatformIO, but most of my devices are running ESPHome with some custom code added on, because I don't feel like reinventing the wheel.
Single program and a couple of MB of ram and flash.