I've also been comparing Element and Revolt. Both seem really solid, both are open source and both are self-hostable. Hard to find any downsides there.
There's a discord server that me and a bunch of friends use as our main hangout. They've raised the prospect of bailing before things enshittify, and of course I've been tasked with pitching a replacement. For my money, Revolt is the way I'm going to go, specifically because it's basically a one for one clone of Discord. The people I'm pitching this to are a mix of technical and non-technical, so I think something that looks and feels like what they're used to will be the easiest transition.
It also feels like Element is geared pretty heavily towards being a replacement for Slack / Teams rather than a replacement for Discord. Their pitch seems a lot more focused on the enterprise market. Revolt seems more focused on gaming, casual hangout, that sort of thing.
I like Element a lot, but for me it doesn't feel like the right solution to this specific problem. But if I was pitching something to my work as a Teams replacement, Element is definitely the way I'd go.