I agree. NIP-29 group chats are more like Telegram groups (though without encryption), while NIP-17 encrypted group chats are simple to implement but not convenient for managing group members, and suitable only for smaller groups.

MLS group chats are easier to manage group members and more suitable for larger groups, but the implementation is more complex.

The next version of 0xChat will implement MLS group chats, it will be in beta.