Also. Those running an exit node can and do sniff traffic.
Sure, but if you stop there with that statement you’re just FUD-scaring people from using the service that does more for their privacy than conventional direct clearnet usage. Every connection that matters uses TLS so the exit node honeypot only sees where the traffic is going, not what’s in the traffic and not where it comes from. IOW, the exit node knows much less than your ISP.
It’s bad practice to login to stuff that’s important (like banking) over tor.
It’s the other way around. You should . It’s a bad practice to let your ISP track where you do all your banking.
Also, nation states can track you using a variety of techniques from fingerprinting to straight up working together to associate connection streams.
And your thesis is what, that we should make snooping easier for them by not practicing sensible self-defense?
A large number of tor nodes are run by alphabet agencies.
Let them work for it - and let them give the Tor network more bandwidth in the process.