I've been so pleased with compose destinations, Rafael has done an amazing job. 🙏🦸 We use it for our app, reaching 500k+ installs and no issues caused by compose destinations, only the underlying nav library has given us some crashes every now and then.
We plan on migrating to Nav3 in the not too far distant future, the biggest benefit we see is the handling of scenes which will create a better experience for tablets & TV, but also the handling of the backstack making splashscreen/login flows easier.
I think there are quite some opportunities for the destinations way of annotating screens in Nav3 as well. I love the simplicity of destinations and it just being a lightweight shim that makes it easier to hook up everything. Not taking overly much responsibility or creating completely new concepts like some other libraries tries to do.