Hyprland is decent, it's one of the better Wayland window managers, that being said it's still in beta and not complete. Also be aware, it's a window manager, not a desktop environment. It won't do much besides well managing windows, taskbar, start menu, notification demon,... have to all be installed and setup by you and the config is done in text files, not some gui.

Also the community is rather toxic, I've made similar experiences to this in the past when trying it out.

It seems to be available in Factory nowadays. Add the X11:Wayland repo for faster updates. You probably also want to install xdg-desktop-portal-hyprland.

I have my own packages in OBS where I occasionally build the latest git version - initially I've been updating it every few days, nowadays it's mature enough that sometimes I lag behind the released versions.

• Is it better to run KDE for this or GNOME?

This would be replacing KDE or GNOME, that being said you can still use tooling from either if you wish but for the most part the DE you're using tooling from would be wasted disk space

• Is Hyprland overrated? Are there any other alternatives?

Haven't used hyprland myself, but is a solid choice