I mean, you're just saying that if you don't dial it up to eleven, but just to nine, then you'll hit less breakage. Which, sure, but that's kinda my point: a usable browser needs to strike a balance, and that's exactly what Firefox is trying to do - which is really something different from "needing a 180-degree turn". Firefox by default is stopping way more tracking than e.g. Chrome, and guides users to installing e.g. uBO.
Also note that most breakage isn't immediately obvious. For example, if you turn on privacy.resistFingerprinting, then Google Docs will become blurred. However, by the time you see that, you won't be able to link that to the flipped config. This is the kind of breakage that many "hardening guides" cause, and by that, they eventually lead people to switch to Chrome, which is the opposite of what they're supposed to achieve.
And sure, Librewolf draws the line at a slightly different place than Firefox does. But the main difference is not sending data like hardware capabilities, crash stats, etc. to Mozilla - which don't threaten democracy or result in hyper-targeted ads, but do enable Mozilla to optimise the code for real-world use.