This is the future of Rails apps for sure, more so than just looking at Hotwire or Alpine.js or whatever, especially for that sweet spot between larger mega teams and tiny companies without front-end engineers.
There's still plenty of room for Vue/React done right when you have the staff and technical investment no doubt. For Node.js and non-Rails apps where the SSR/hydrating story for complex front-end UIs are needed then it's still very comparable and not really worth the 'paradigm shift'. Otherwise if you're on Rails with Vue you need to do it right and/or you don't mind a bit of latency and have users using Chrome/FF.
https://viewcomponent.org/