Commuters with monthly or longer tickets will need to use an Oyster card, but anyone with only weekly, daily or individual tickets is fine with a contactless credit card.
I think only foreign tourists who don't have a credit/debit card, or whose banks levy a high, fixed charge per card transaction, or who are eligible for some other discount (foreign children age 5-17) should buy an Oyster card.
> but anyone with only weekly […] tickets is fine with a contactless credit card
1. The weekly capping always runs Monday to Sunday, so if your stay doesn't align with that, you'll get to pay an additional capping period, in which case buying a weekly travelcard aligned with your stay will likely be cheaper (as long as you know which zones you'll mainly require).
2. Having a travelcard gives you the ability to buy slightly cheaper rail tickets for destinations outside of the TfL zones. Pay-as-you-go doesn't, unless you physically get off the train in order to touch in/out at the boundary.
3. Transit nerds only: Pay-as-you-go is subject to certain maximum journey times. If you'll exceed those by staying to long within the system, you'll be presumed to have forgotten to touch out and will be charged a maximum fare. A travelcard avoids that issue.
(They expire at 4am, though the point remains.)