This is not at all standard practice. It should be noted that just because you read something in a post on hacker news doesn't mean it's a good idea, common practice, or even well-reasoned. OP for example is making extensive use of Hooks, which are well-known not to be the best solution to the problem of state management within React.

For example, useState leads to prop drilling, coupling, and cumbersome usage patterns.

React is a declarative rendering library, it should handle: A. What DOM elements are created? B. How are those DOM elements structured? C. What styles and attributes do those DOM elements have?