Earlier quoted context omitted.
For cases when you have let's say a gaming PC and a Macbook connected to the same screen. You want a USB-C port so the Macbook will get everything from a single USB-C port (power included), but you also want your gaming PC to benefit from a high performance monitor with high refresh rates on a DisplayPort/HDMI connection.
Isn't this what a dock is for? Are you treating your monitor itself as the dock? I still don't see why the monitor itself needs USB-C support. I use a Lenovo Thunderbolt dock for both my M1 16" MBP and a Lenovo laptop running Linux. It runs 2 x DisplayPort monitors, mouse, keyboard, and webcam.
Yep. There are monitors with Type-C, power delivery, usb hub, so they avoid you the need of having a dock. Usually they're priced at around monitor+fancy dock, so it doesn't even cost more for more practicality.