The very definition of over-engineered. This is just event-sourcing turned into a marketing article for Kafka. It doesn't really matter what the "source of truth" system is, although Kafka doesn't seem quite as mature/stable enough for that. With such little data, they can push into a nice graph database instead, run it entirely in memory and meet 10x any demand they'll ever see along with all the query types they'll…
You could use any database, but Kafka has apis specifically for that. Why would you reinvent the wheel? What makes you think that Kafka is unstable?
The dataset is small and all of the "very different" use-cases are just downstream apps that query a database. Why use Kafka to then materialize several different databases when a single graph database can serve all these downstream apps? Remember Kafka consumers themselves are just polling queries against a log.
A processing log is one thing but event-sourced source of truth in custom database logic in Kafka is borderline ridiculous. This project is more moving parts and less functionality while cleaning none of the existing mess. Effort would've been better spent consolidating all their systems instead (which they still have to do since these standard schemas need to be used somehow).