Thanks for writing this Ankit, I've never used custom hooks, this might be a good article for me to come back to while learning those.
Also i have a question, maybe a bit vague, but is there a point when you start thinking, "I'm using too many state variables to handles UI changes".
I searched a bit on reddit, people said they fix it when they hit perf bottlenecks. Do you find yourself in this situation, if yes how do you go about it?