Once you feel the battery can't last longer than 3h-4h (if you not using heavy lifting software) then it's time to swap the battery, at the end of the day it's a consumable like brake pads and oil on a car.
Yeah, keeping a battery plugged in all the time seems to me to be the worst thing for it these days (besides letting it cook in the sun).
My mother in law has an iPad Air 4 that she's kept plugged in a lot (just how she prefers to use it) and after 80 cycles it has 92.8% health. If I remember correctly, that iPad dropped pretty quick to 96% then leveled out a year later in the low 90s and has stayed there pretty consistently since. Still lasts an insanely long time - she doesn't even use it for more than a few hours at a time.
In the end, like you said, it's a consumable. If it doesn't serve your needs then it's time to upgrade, replace, or move on. While I love to observe battery health, worrying about it is a wasted endeavor.
If one does want to spend time learning how they can treat their battery well:
https://batteryuniversity.com/article/bu-808-how-to-prolong-lithium-based-batteries - read that a few times. Best thing you can do is a 40-80% usage cycle - don't keep it at high state of charge for long periods of time.
These batteries today last a LOT longer than devices I've used (including Apple) in the past.
I never thought I'd see the day when:
I can charge my watch once every 3 days (Ultra).
I can charge my phone every 3 days (13 PM).
I can use my laptop heavily for work all day long and not have to charge (MBP 16').
I can charge my iPad once a week (Air 5).
Battery heaven.