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.

With recent drivers and recent enough DEs it is usable to a certain extent. There are some known issues documented 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 older 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 for X11 applications within a Wayland session 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.

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

It works fine (runs with minor graphical gliches) for me but i have heard that its a complete mess for others. I'd recommend checking how well your particular system works.

If it works well then it might be a good idea to switch since wayland does have some pros comared to X11.

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

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.

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.