It’s probably because I have too many peripherals plugged in, but I will sometimes have all of my USB devices get ejected spontaneously, which is a pretty big problem if it’s something you’re working on, or your photo library as was the case with me. Recently I had the external SSD I kept my photos become unreadable (not sure if it was because of this issue or something else). I had backups, so it was just an inconvenience but I now have enough internal storage for my entire photo library on the 16” and it has been very nice.
And of course there are issues like not having a file you need when you need it, etc.
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And yes, you can install applications externally, but many apps don’t behave properly unless they are installed in the Applications folder.