Not OP but since you're asking: next/image was unusable last time I tried it. I ended up using next-optimized-images, which didn't feel a lot better but was at least usable for my case. I wanted to compile the images at build time instead.
While I'm at it, next/link also had some bonkers defaults such as the link prefetching on view instead of on hover (neither of which could be disabled, either…).
I hope all that is getting some attention soon. If I can offer some frank feedback: I've had an overall positive experience with the framework, but there have been clear quality issues here and there and I'm always concerned when I see a large feature churn without a high amount of attention being put into existing bugs.
Maybe this is already fixed in 11.1, but static site generation seemed broken for me with create next app. I had to go in and remove usage of this feature before static build will work.