- Non-tech-savvy users might not instantly recognize example.xyz as a domain name. When you discuss your site in person, you might have to explain the TLD, whereas with .com, .net, .org, this isn't an issue.

- If the same domain name but with a more popular TLD exists, people might accidentally go there instead.

- Some outdated validation code (such as a regex to match valid email addresses) might not recognize the TLD, especially if it's one of the long ones. I'm not sure if this problem actually exists, but it could.

In my opinion, the nonstandard names are useful for branding, but it can be detrimental when there is a name collision with the .com address.

I bought company.tld for my company along with companytld.com, and brand my company as companytld, in hopes of avoiding any confusion.

If you wanted to brand as just company, it may muddy the waters a bit if you don't also have company.com