Maybe you can do both: physical USIM card, but with eSIM functions. So you can move your profile from one phone to another just by plug out and plug in, and install many profiles on one phone and switch between them. There are some products can do it, such as eSIM.me, esim.5ber.com or https://github.com/estkme-group .
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I use eSIM, because it's so much easier when traveling overseas to get a physical data SIM than it is to get an eSIM. Many countries' regs prohibit eSIM sales to non-residents, weirdly.
Both, one physical SIM for data and one esim for calls. I'm actually using a sim from esim.me which turns an esim into a physical SIM so I still have my phone's esim free for when I buy a travel esim.
eSim, that seemed to be the default for my provider/phone (Google Fi with Pixel). It works fine. The online activation seems to work okay, I've even moved to different Pixels without much hassle.
That aside overall I'm indifferent to using Sim or eSim.
Physical, because my telecom only supports eSIMs for smartwatches... Even if they offered it for mobile phones, I would prefer a physical SIM, so that I can swap it easily if I'm overseas