There’s room for both, IMO. I went cordless early and I’m surprised how often I’m still using (and preferring) air tools.
I have a makita cordless ratchet and and cheapo Husky air ratchet. I reach for the Makita first, but often end up having to use the air ratchet anyway because that battery just adds so much bulk. The makita is 14.5” long and the battery is pancaked along the bottom rear:
The Aircat ratchet I’m looking at is <9” long:
Strongest 3/8" Mini Ratchet in its class! 45 ft-lb Loosening torque Single pawl mechanism Fast rundown 320 RPM Superior internal mechanics Patented quiet tuned exhaust (82 dBa)
aircat.com
Over 5” shorter and slimmer as well as higher RPM for the same torque output. 5” is more than enough to account for an air fitting or swivel and such.
That’s ratchets. For impact tools, the advantages of air are 1)physical size (as always) and 2) smoothness/vibration.
There are some compact air impacts now that are amazing in their power for the size. Cordless, but comparison, is huge and fits in a lot fewer places. Yes, cordless if fine for lug nuts and a couple wide open spaces. But for underhood and front end work, I find the cordless just doesn’t fit well enough to be much use. My cordless is a compact 1/2” only rated 240lb-ft, so by no means is it huge. It’s just still too big.
For similar power output, I could get an Astro Nano that is much smaller and more compact and yet more powerful. It’s also a lot smoother.
I have arthritis now pretty bad and I place a high premium not having my hands vibrated to oblivion. high output cordless is simply not possible for me, it would destroy my hands and the tools are HUGE.
The most useful cordless is a small impact driver with a 3/8 socket adapter. They fit a surprising number of places and are mild enough that they don’t even need impact sockets. You can’t hurt a chrome socket with a 1/4” hex drive.