It’s honestly personal preference.
I updated. As much as I love the idea of CFW, my Switch is my daily driver and I use it every day. I also need mine for reviews. I have no interest in piracy, and my Vita has me covered for my handheld homebrew. I simply really like CFW, but once it became clear that 4.x support wouldn’t be coming for a long while anyway, I decided to just skip it.
More broadly, I think it will be difficult to establish active scenes with the current 0-day exploit policy. The devs are of course perfectly entitled to do what they want. But it’s notable that the 3DS, Vita, Wii U etc. scenes only really took off once we got exploit for current firmwares. The PS4 scene is plodding along but there was years of inactivity, and the iOS scene is arguably dying out for the same reason.
I’m keeping my PS4 on 5.01 because I never use it anyway, but the Switch? I’ll stick with my Vita until we get a solution that doesn’t require keeping our consoles unupdated for half a year.