To those on outlook and other programs as long as your program supports o auth 2 it will be fine.
Even though thunderbird with normal passwords works fine with o auth I get a faster experience with sending and recieving.
I did have less secure apps on, but just turned it off since now I am able to use o auth in thunderbird I have no desire or need to leave that active.
Becides google keeps complaining about it every so often so I don't have it.
If you currently use outlook as a home user and either don't use any advanced features or are only using it for mail, I'd personally switch to thunderbird and turn on o auth so that you can get mail without this insecure stuff.
You can also buy office 2019 which should have this security standard.