Yeah, that's a useful distinction. So it's excellent for ex. packages (hence https://www.archlinux.org/news/now-using-zstandard-instead-o...), but iffy for write-once-read-hopefully-never backups. (Although I've heard it suggested that this might flip again the moment you start test-restoring backups regularly)
Agreed. I think I'd take zstd over xz for WORN backups anyway, just because it's pretty reliable at detecting stream corruption. (Then again, I suggest generating par2 or other FEC against your compressed backups so that's not a problem.)
(I know you know this, as one of the principals; this is for other readers.)
And importantly, that 32-bit checksum is a pretty good checksum; a truncated XXH64(): https://tools.ietf.org/html/rfc8478#section-3 That's about as high-quality as you can expect from 32 bits. It's not, say, Fletcher-32.