1. It works beautifully for pinups. If you want a single character posing for a magazine picture, it's just the thing.
2. It works great for character design. It makes great backgrounds a lot of the time, and you can throw various details like "blue hair", and "tattoo", and "spiked bracelet" and it comes up with pretty much what you'd expect.
3. Some tags are weird. Emphasizing "death" gives you a skull for a head. It says "upside down" is a tag it knows well, but it always looks weird. Emphasizing "headless" still results in a head?
4. It often doesn't draw nipples by default. Add a "nipples" tag to fix it.
5. It has trouble with furry anatomy. Tails are often duplicated, sometimes detached from the body. Rabbit ears easily merge into the hands.
6. Couple images only work with standard pairings. Two characters of the same species is easy. For different species it must be a common combination. I tried "male rabbit, female fox". So far it insists that the male must be the fox. A cat and a raccoon doesn't work so far, gives me two raccoons instead. Details tend to apply to both characters. A combination like one character angry and one scared is unlikely to work.
7. It has per-species hangups. Hedgehogs are Sonic style, no exceptions. Panda bears are stocky by default. Red pandas for some reason are serious and rather geometric looking.
8. Complex background elements are hell. I tried to put a head on a piano (Samurai Cop reference). It never looks like a remotely normal piano.
9. Exact composition is very difficult. I tried to create an image suggesting a rabbit being served as food. Getting a good looking rabbit, some sort of cutlery, and some sort of sensible positioning takes ages. Inpainting can be used to add and remove elements which helps a lot, but the entire image always changes, and the good parts sometimes become "overcooked".
10. Inpainting is difficult without being an artist. If you paint a stick figure, you get a stick figure as a result. It works best for retouching small details, like removing an extra tail.
11. It can be used to turn an artist-made sketch into an AI version. I'm not uploading an example of that because of ethical concerns, if somebody wants to see what happens, feel free to volunteer something you personally drew.
Update: Page 24 onwards is the "generate from sketch" experiment, thanks to \r\n\t\t\t\t\t
| \r\n\t\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t\t \r\n\t\t\t\t\t\t\t\t | \r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\tHoremheb\r\n\t\t\t\t\t\t\t | \r\n\t\t\t\t\t\t
12. The builtin editor really sucks. It would greatly benefit from at the very least a clone tool to remove undesired elements.
Overall, the complexity of getting things done grows exponentially. The more specific you want it to be, the more you'll have to fight with it. Specific poses, specific character designs, specific scene composition, complicated background elements, etc greatly increase the difficulty of getting something sensible out of it.
It's also extremely difficult to make series of pictures with a plot with it. It's hard to keep a character consistent from one picture to the next, and it's very easy to run into scenarios where picture #1 comes out fine, but #2 just refuses to happen. It's much easier when you have a rough idea and just roll with whatever comes out.