Window decorations become jumbosized when you flip a convertible laptop. This is fine if you're assuming the primary use is for touchscreen, but ends up wasting space for pen users.
Yeah, it's for touch users, and was added to support the Steam Deck use case, for which there is no stylus. So I don't think we could simply not do it at all, but I guess we could make it configurable so that people who use their 2-in-1s primary with a stylus can go back to the previous behavior. But the window decoration isn't the only thing that gets bigger in tablet mode. Maybe stylus users want to disable all of those things. Is that the case for you?
We need to make a decision - either tablet mode means "optimise for touch" or it means something different. So far, we have been assuming the first, but this potentially conflicts with a laptop that has an actual tablet mode switch which you use with a stylus. If we want to do the first, we may want to make sure that we are using touch, so effectively making it always check to see if touch is the only pointer input method. Alternatively, we could adjust the API to have two switches, "tablet mode" and "touch is the only input" and change most of the code that is currently checking for tablet mode to check for touch input. That said, I don't really know what tablet mode would do in that case.
Optimizing for stylus use doesn't require many if any changes, since a stylus is a precise pointer device like a mouse. So for the moment it means "optimize for touch" and I think that makes sense.
I flip my convertible in order to use it with a bluetooth keyboard and mouse. Having the system optimize for touch is kind of annoying in that use case as well. Tablet mode does trigger the orientation sensor in the wayland session, so I wouldn't necessarily want it disabled entirely.
There's not an option to never enter tablet mode when you're using a convertible laptop and you flip it back. If whenever you do this you use a stylus and thus have a high-precision pointing device, you probably want to use that setting and tell it to never use tablet mode. Then the window decorations will stay at the size they were before.