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I guess for personal purposes it works well.
If you’re snooping other people’s data, it could be wildly out based on their input weight, FTP, bike weight, trainer/power meter accuracy etc.
Acliff-
Yeah I think the outliers thing is always going to be an issue but seeing how things are on a bell curve etc I found helpful, but you'd also hope someone using a tool like that has at least some interest in accuracy and in aggregate should strip out a decent chuck of device variance and the weight stuff it's only really useful if it's accurate, so should have less of the Zwift disincentive around weight accuracy.
Kelvin
It uses PM meter data when available. Think the power curves etc are always PM based. A neat feature is a very accurate estimate of TSS from HR (using your historical data as a model) when you ride without a PM but with a HRM. I don't have a PM on the winter bike so this is pretty handy.
The estimated FTP from one-off hard efforts is pretty damn accurate too once you tweak the parameters.