The format is fine, except for https://www.nongnu.org/lzip/xz_inadequate.html
In fact, I'd wager that all the focus that article has put on the minor problems with the format has taken much needed attention away from the fact that the maintainership makes xz-utils inadequate for long-term archival...
If you find that sort of thing happening to you a lot, then lzip might be the format for you. But I can’t say I’ve ever heard of that being a real recovery scenario.
A much saner approach to enabling recovery from corruption would be to keep external checksums and parity files.