Alacritty has kind of a lot of input latency, it's noticeably worse than wsltty and the default WSL terminal -- at least back when I checked it a year ago.
I think some work has been done to improve it, but at this point IMO if you're on Windows then wsltty is as good as it gets for a general purpose terminal. If you're on Linux, xterm is top notch.
I don't know, I've got two panes here opened next to each other (tiled/xmonad) with xterm and alacritty, and I've been typing in those for the last 5min, and I really can't tell the difference (my monitor has 5ms latency).
I think some work has been done to improve it, but at this point IMO if you're on Windows then wsltty is as good as it gets for a general purpose terminal. If you're on Linux, xterm is top notch.