It’s what I use and it works great. In fact, my Rimowa was delayed (and damaged) at my origin airport. I was able to go straight to the Customer Service desk to file a claim without waiting for the baggage carousel to do its thing.
I also haven’t noticed any difference with using various outside materials of a bag (e.g., aluminum, cloth, polycarbonate).
*Edit: I think this is the second post I’ve replied to dealing with AirTags and yet I only have 5 total posts. I promise you that I’m not a shill. The reason I bought these in the first place was for luggage. I’ve lost luggage in Albuquerque, St Louis, Chicago, and even Doha.