I think Hooks are genius truthfully. But they are definitely shoehorning something into a place that didn't expect it. You are calling these render functions with the purpose of creating new transformations every cycle, and the injection mechanism has to include the initialization the first time. So you basically have these slotted things that allocate memory every time to just use what's cached most of the time.
Now don't get me wrong I've benchmarked Hooks like crazy and I don't think they are much consideration on performance at all. It's just the mental model of always update on the outside with bubbles of things that don't update creating these closures is a little unnatural. By comparison the mechanism they ape (fine grained reactivity) works exactly the opposite way. You just need to be aware the stuff outside doesn't update. Wrap what needs to be updated. Done. There are no out of date closures. No inconsistent mental model. It's as straightforward as registering event handlers.
Still I have to admit the solution is genius. They have managed to get 90% of the benefits with simply repositioning things. At one point this was one of my biggest arguments against React. People didn't appreciate it before hooks. But can you imagine knowing you could write applications this way years ago and trying to convince someone using React classes there was a better way? I just sort of gave up and did my own thing.