Agree completely, React Query has made it so much easier to build any kind of app that deals with server state, stuff that would have been extremely challenging to write in the past is now just a couple of lines and works better than before.
I personally like using Jotai (if I just want a better version of React Context) or Zustand (if I need a bit more than that) for “client state” alongside React Query, but I’ve also built projects where I didn’t need a client state management solution at all.