not sure if it has some limitation that would incentivize using testnet instead
The only serious limitation in signet I can think of is mining. You can only get coins from faucets created by signet developers. You cannot mine a single block on your own. Or rather: you can mine it, but you cannot sign it. Also, you can do one block reorg, because nonce is not signed, but then the next signed block will resolve that and all nodes will follow the right chain.