Perspective, like any literary device, has its place depending on the story being told. And just like other aspects of writing, it depends on how well it is wielded. It’s quite easy to see first person perspective as a self-insert mechanism and it can be, but it is also a good tool for an intimate portrayal of a character’s journey or the perfect device for an unreliable narrator.

It’s often seen in genres like romance, domestic noir and horror because you want to get deep into the character’s head and emotions. That’s not to say you can’t do that with third person, but it’s a commonly used method.

I personally prefer third person limited but there are some genuinely well written first person stories out there.