USB-C Alt-Mode and Thunderbolt always trump DisplayLink. So it's best to figure out first what displays you want to connect and then buy the Mac that supports that configuration. But if you already have a Mac that doesn't support the number of displays that you want to hook up, DisplayLink is a solution.
Luckily, these new MacBook Air models support two external 5K@60Hz displays with the lid closed.
I was cautious about this issue before buying the device, but the fears turned out to be unfounded. Sure it won't be good enough for competitive gaming or something like that, but watching youtube is pretty good, and text rendering is indistinguishable from regular display. The only issue is that refresh rate seems to be about 30fps but for many tasks it is acceptable.
> USB-C Alt-Mode and Thunderbolt always trump DisplayLink.
Yes, but does it allow you to connect 3 displays to your notebook? I actually wanted just 2 external displays, but the DisplayLink device had 2 ports, and I have many HDMI displays laying around, so I connected 3 because I can.
I've used both and while Displaylink works, native support is definitely snappier. Not by much, but just enough to be able to notice.