Functionally, a pruned node can do what a full node can.

By that I mean you can enjoy the privacy benefits of connecting your own wallet to it without someone’s else’s node seeing your data come through.

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The downside of a pruned node is the fact that it is trusting blockchain data from other nodes that your pruned node did not itself verify.

This means there is a “loss” in the verifiability of the integrity of the entire blockchain from block 1 to the current block.

Since an aspect of the Bitcoin ethos is “don’t trust, verify”, node runners tend to operate a full node when possible.