As an AMD user on Wayland who primarily uses Steam/Proton, I haven’t had any Wayland-related issues with gaming at all. This isn’t surprising, since the compositor used by Steam Deck (Gamescope) is also Wayland-based.

FYI: If you ever do have compositor-related issues (X11 OR Wayland), you can almost always fix the issue by running the game in a nested Gamescope instance by editing the game’s launch command.

545 will have better wayland support. For now X11 is a better choice i guess. (i don’t own an nvidia gpu)

Last I looked it still wasn’t working well enough, so I decided to stick with Xorg. But that was a few months ago.

With recent drivers and recent enough DEs it is usable to a certain extent. There are some known issues document in the release notes of each version. Here’s for 535. TL; DR the major blockers are: (1) Variable Refresh Rate doesn’t work for some cards; (2) GAMMA_LUT is not implemented (no night light) and (3) Nested X11 clients have synchronisation issues that might result in some flickering or dupicate frames, it’s more noticeable on things that refresh slowly, although much better recently. Also (4) NvFBC capture doesn’t work with nested X11 clients which might or might not be important for some people.

I’m using it with Plasma; it’s OK, no major concerns but my setup is pretty basic.

Nvidia or not, stick with X11 until you have a reason to use Wayland.

I need Wayland for my packaging work, and one of my devices requires Wayland so I use it for that and it’s a decent experience, but Wayland still has drawbacks (weaker automation API, some programs still don’t work) so I wouldn’t recommend switching off X11 unless you have a reason.

I would personally stick with X11 for now. Last time I tried Wayland it worked but all sorts of just strange issues started popping up everywhere. Nothing big but annoying and frustrating to fix. This was using KDE Plasma.