will strip all elements out. That's not too difficult.
Plus this is defense-in-depth. Backends will still need to sanitize usernames on some standard anyhow (there's not a lot of systems out there that should take arbitrary Unicode input as usernames), and backends SHOULD (in the RFC sense [1]) still HTML-escape anything they output that they don't want to be raw HTML.
i think the use case for setHTML is for user content that contains rich text and to display that safely. so this is not an alternative for escaping text or inserting text into the DOM but rather a method for displaying rich text. for example maybe you have an editor that produces em, and strong tags so now you can just whitelist those tags and use setHTML to safely put that rich text into the DOM without worrying about all the possible HTML parsing edge cases.
Plus this is defense-in-depth. Backends will still need to sanitize usernames on some standard anyhow (there's not a lot of systems out there that should take arbitrary Unicode input as usernames), and backends SHOULD (in the RFC sense [1]) still HTML-escape anything they output that they don't want to be raw HTML.
[1]: https://www.rfc-editor.org/rfc/rfc2119