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At times this is an amazing blessing because some of the more out-of-the-box solutions get formed in these moments but more recently it's been veering into unhealthy obsessive territory (e.g. out for dinner or exercising).
Please share your experiences + any tips around striking a balance?
During out for dinner: Alone of with someone? When you are with other people the UI/UX is important and must be responsive. Remember to switch off as many side process as possible.
I know this is probably not the answer you wanted to hear. But reducing my work hours to 30h/week has been the single biggest improvement to quality of life that I've ever made. I've never questioned if it's worth the money.
I would add that getting out into nature can be really helpful as well. If you're in an urban situation a walk in the park or near some water is good.
Exploring art like with physical drawing or painting can be good too. Or sculpting if that turns you on.
I think it's really important as part of this to get out of the "productivity mindset" - so go for a walk/run/bike ride/whatever and don't try to get a "two-fer." So don't listen to a podcast or audiobook while you're exercising or walking. Really try to dial down all the mental input as much as possible. You don't have to do this all the time but at least a few times a week can really help.
If I'm thinking about a hobby problem, then I don't sweat over it, unless of course it's eating into some other aspect of my life (friends, outdoor activities, etc).