I have no problems running a light show with xlights and esp controllers.
I have 12 effects each with its own controller. I use a mixture of node mcu’s, D1 mini’s and esp32’s.
The benefit of individual controllers is that in the event of a malfunction the problem does not spoil the show and can be easily fixed or replaced.
There are a total of 1950 pixels with a maximum of 600 on a controller.
A good WIFI signal is essential and I keep cable lengths from controller to first led as short as possible.
I have not found it necessary to use a level shifter or sacrificial pixel to boost signal data.
Good luck with your project and do not feel pushed into purchasing expensive hardware, buy good quality lights instead and all should be okay.
Alan