How I typically handle React state today:
Data fetched via HTTP: React Query.
Local state: useState or useReducer.
Forms: useState or React Hook Form.
Global state and functions: Zustand or Jotai.
The ground state, the state to aspire to, the healthy state, the state that occurs naturally when you aren't forcing yourself to do anything, is the state where you're getting done what you want done as fast as is sustainable, and no faster.