If you do not shoot brick walls, you will like its small size. It can pass for a standard lens and help you shoot interesting street views (I know, that's unethical but some rare people deserve that).
I always found its wavy distortion difficult to handle.
The 20/3.5 AI is definitely the better alternative (and even smaller) but that is no reason to throw away the 20/2.8.
I made no side-by-side comparison with the Viltrox 20/2.8 for Z mount, but the latter does not feel superior (even though its wavy distortion is less conspicuous). The old 20/3.5 UD better but needs to be stopped down.
Being curious, I decided to do some more test shots to compare the Nikon 20mm f/2.8 with my old Fujifilm 14mm f/2.8, and I made some interesting discoveries:
Both lenses set at f2.8.
Near minimum focusing distance (MFD):
a) Center: The Nikon 20mm looks way better than the Fujifilm 14mm—sharper and more contrasty.
b) Extreme corners: The Nikon 20mm looks bad here. Even without my glasses, I can tell the Fujifilm outperforms the Nikon in the corners. In fact, the Fujifilm seem to be sharper in the corners than in the (its own) center!
c) 25% diagonal edge: The Nikon performs very well in this area.
At 2.5m distance:
a) Center: The Nikon still holds up well, and the center still seems to be better than Fujifilm. This time the Fujifilm looks better overall, though its contrast is still a bit lower than the Nikon’s.
b) Extreme corners: The Nikon is just as bad as it was at MFD. The Fujifilm remains very strong in the corners, though slightly worse than it was at MFD.
c) I got tired at this point and didn’t bother checking the 25% edge.
Please note that the test might be unfair, tilted in favor of the Nikon, as is was conducted using two different cameras (FF vs APS-C).
Cheers!