For me at least, there is no way to look at that screenshot of a space-wasting yet partially occluded fullscreen app with an awkwardly-placed naked video component on top of it and say it "looks great".
> windows side by side, but that's a huge pain
Window positioning on OS X is a huge pain because literally no work has been done on this by Apple for many years now. Other OSes all have window snapping and other conveniences, but on OS X I need 3rd-party software for that. What's more is that PiP is a barely adequate specialized component from iOS. The more generalized desktop element would instead have allowed to "PiP" any window content I choose by essentially being an always-on-top decorator-less partial window. But the way they are presenting it is not going to be empowering for desktop users in any way. It's a thoughtlessly ported component from the more unpleasant corners of the Youtube iOS app.