Build an amazing app/platform/service. Host it on whatever tld is cheaper/convenient/some_other_criteria. No one will care what the extension is - especially with current and upcoming consumption models (mobile apps, vr/ar, and so on).
Is there any objective reason (performance, reliability, etc) to avoid certain TLDs?
It makes some sense, .xyz are so cheap that I've bought mines for $1 so just buying a domain every day isn't outside the realms of possbility for spammers. Personally, I just use my .xyz domains for internal stuff where I still want things connected to the internet and available.