Yeah, space is not that much as an issue that I thought it would be. Like I bought one because I though I'd be constantly deleting stuff with only 667GB of space available but game sizes are manageable - discounting any Call of Duty games xD Holding might be also a good idea, in case of bugs etc and beta testers giving information as to what drives work best.
As for performance from running games on an NVMe, Tom Warren from the Verge (posted on Era) who's tested it though he said it works well and no hitches thus far from playing Ratchet and Clank. Didn't specify which drive though https://www.resetera.com/threads/official-ps5-m-2-storage-expansion-coming-in-the-next-update-for-beta-users.463941/page-5#post-70390977