> Chrome "picture in picture" window doesn't stay on top when I click somewhere else since Wayland doesn't allow windows to stay on top.
Wayland doesn't allow apps to force themselves to be always on top. I would argue that it is up to the window manager to provide this functionality at the discretion of the user. Kwin does this.
I would argue that software that I choose to install already has my discretion and should not be limited by the windowing system in what it can do.