Overloading Space, Tab and Enter to be used as a modifier when held means that you can't get auto-repeat on these keys and they are activated on-release instead of on-press, correct?
QMK firmware has a handy feature for this called Tapping Force Hold[1]. If you hold the key normally, it modifies the layout, but if you tap it once (or more) and then hold, you'll get the normal repeating behavior.
Example A:
Hold Backspace => Activates layer overlay
Example B:
Tap Backspace => Input backspace
Hold Backspace => Input held backspace => OS handles repeating as configured
I believe so. You also lose repeat on the home row keys because they become modifiers when held. It’s a trade off, but one that many people make since repeated key presses is not as useful as the mod keys. Same is true for people who remap caps lock: they give up a lesser used feature for something more useful for their specific preference. Of course once you get into keyboard customization you can start doing things like map caps lock to escape when pressed alone, control when pressed in combination with another key and maybe make shift + caps lock activate caps lock. Depends on what you need and what you’re trying to accomplish.
I get auto-repeat on space by doing tap-then-hold of the key. Apparently not for tab/return. - I presume the behaviour is configurable if that's something that suits you.