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One thing is to have JS for client-side interactivity, and another thing is to generate the entire HTML using javascript by sending both the data and javascript bundles to the client.

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Incremental rehydration techniques make this much much less of an issue (React 18 supports this now, IIRC, for instance). The tl;dr is that if you employ SSG or SSR you won't endup up with immediate re-hydrating once the client loads up, but only when something triggers the need for re-hydration, like a button click.

That to me seems like the sweet spot for highly interactive applications that are very stateful, however like I said previously, your mileage may vary.

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