You should definitely give XMPP a chance, but not feel bad about ending-up with whichever feels better: they are mostly fine, and largely preferable to the non-standard/non-federated alternatives.
XMPP is orders of magnitude lighter weight so that might factor in if you have associated costs to running in the cloud.
If you want to get started the easy way, go with ejabberd, it has sane defaults and lots of convenience (e.g. it embarks a stun/turn server to facilitate calling through NAT, acts as a ACME client to renew certificates automagically, …).
On Android, Cheogram is a good client to recommend for power-users, Quicksy/Conversations for those who want to use their phone number for contacts auto-discovery. Desktop has Dino/Gajim, (i)OS(X) has SiskinIM, BeagleIM.

Regarding the libera.chat drama, you can read more here: https://libera.chat/news/temporarily-disabling-the-matrix-bridge
IMO that tells a lot about the people behind Matrix and their overall attitude (I had the same "trust us", "it's gonna be soon, I swear!", "that was bad luck but it's gonna be fine!" vibes when interacting with the Matrix team members in the early days).