I always saw it as an alternative cartridge to the 22Hornet, the smallest CF beyond the .22RF for those that didn't want to reload, or couldn't.
Plus the bolt and single shot rifles the 22Mag were generally offered for sale in were much less expensive than the .22Hornet's.

This going back to the 60's when the 22Mag was becoming very popular.
I didn't have the extra money needed to spend per box of magnums vs .22lr's.
For me that was instantly the drawback of the round.
Next was that for what I used a .22 for (squirrels, occasionaly rabbits and some woodchucks),,the LR version worked just fine.
I didn't feel a need for the extra power.
Any extra range woodchuck shooting was attempted with $10 or $25 milsurp rifles and $2/100 fmj ammo.

The .22mag rifles seem to be very accurate as a whole. That I've seen for myself test shooting them during repairs at shops and factory.
I've never really noticed much of a terribly unpleasent noise about them. But these were rifles, not handguns.
Can't say I have much of any experience with 22Mag handguns.

I don't hunt anymore and haven't for many years.
So I continue to find no personal need for a .22Mag

But plenty of people like 'em and find a lot of use for them.

I guess you could take 98% of all commercial cartridges in production at any time and scrap them. Just keep the other few and they'd do everything needed in field, target and SD.
But that'd be boring.
That's why there is the .22Mag and all the others so we can pick and choose to our personal likes.