The way I think about this is what work is involved in each type of display/backglass to make proper use of them. How much work do you need to put into creating content for each type of display?

For example, an older segment display or old-fashioned score reels that only shows the score for each player doesn't require any extra work after you wire it all up. Or if you use a TV to emulate a traditional backglass as you mentioned, you can keep it as basic as you like or take it as far as you like in terms of videos or animations. Both of these options seem pretty straightforward.

In my first homebrew, I used an RGB DMD with a standard translite. It was easy to use MPF to display text for scores, stats, and instructions. But if you leave it at that, you end up with a very plain-looking display. If you're happy with that, great.

But DMDs look their best when they are animated. The downside of using a DMD is that it's really hard to create animations and images that look good. Good pixel art is a lot harder than it seems.

Here's an example of the frames I hand drew in a pixel art program to create an animation of an asteroid exploding for my DMD:

image_127195 (resized).jpg

Now here's the result:

image_127187.gif

While it was great to see the above animation on the DMD, it was a lot of work for something that is over in a flash. The mode I was using this in needed nine separate animations, so imagine doing all of the above nine times. That's just for part of one mode.
I spent more time creating animations for the DMD than any other aspect of coding the machine.

What I'm trying to say is, to really make good use of a DMD, you need to be able to create good pixel art and be willing to put the time in. For me, the work to make a DMD look good was just overwhelming.

For my current project (Kraken), I'm using an LCD like JJP. I'm only just starting the layout and it's already easier to make something that looks good than making pixel art for the DMD. Significantly easier.
I already know how to use After Effects, so creating videos and animations aren't too hard. But if you're unfamiliar with programs like that, it can be a lot of work before you can create something that looks good (or just dump video clips from movies/TV on the display like Stern did on their first few attempts).

Some people will find it easy to create good content for DMDs, others will find LCDs easier. Some people may prefer to avoid displays completely and use reels or segment displays instead.

I don't think there's one best route for a home builder as it depends on what type of content you feel comfortable creating for your backglass/display.

Hopefully my ramblings help give you a different way of thinking about it.