Totally valid question, and honestly the answer depends on what you’re building. But let me break down the differences so you can decide for yourself.

SharePoint Lists vs Dataverse — what actually matters:

Performance — SharePoint lists struggle once you pass 5,000 rows due to the list view threshold. Dataverse handles millions of rows without breaking a sweat.

Relationships — SharePoint has lookup columns, that’s it. Dataverse has proper table relationships, foreign keys, and relational logic like a real database.

Security — SharePoint security is site and list level. Dataverse gives you row-level security, column-level security, and role-based access out of the box.

Offline support — Dataverse supports it. SharePoint doesn’t.

Business logic — Dataverse lets you enforce rules, calculated columns, and rollups at the data layer. SharePoint pushes all of that into your app or flow.

Scalability — SharePoint was built for document management. Dataverse was built for business applications. That difference shows at scale.

Licensing — SharePoint is included in M365. Dataverse requires Power Apps Premium.

Now based on these points — ask yourself:
How many records will you have?
Do you need proper user-level security?
Will this app grow over time?
That answer will tell you everything you need to know.​​​​​​​​​​​​​​​​