The estimates now seem pretty good for those from the UK, but not good for anywhere else. One thing I have noticed is that they are not able to tell the difference between deep English families in Wales and Welsh. A considerable number of my ancestors who lived in Wales were of English origins, and had been living there since the 16th C. I think what Ancestry are doing is comparing trees to DNA and assigning certain occurrences as a certain ethnicity based on that. Their sample of data is very small beyond that. e.g. I have 0 Scandinavian matches on Ancestry, while about 33% of my MyHeritage matches are from Scandinavia. Despite only having 6.25% Scandinavian ancestry.
I do find ethnicity is somewhat useful. e.g. if I find a match and I see they share a certain ethnicity, I can have a good idea what line it is. Also when researching matches who have limited trees I will often look at the ethnicity. Often they are something like 12 Welsh, which I interpret as probably looking for a Welsh gg-grandparent. That narrowsthings down a little. Further, the ethnicity has allowed me to identify some tests that are only a name. If you have a 70cM match named TimNicholson76 and his ethnicity is 50% Scandinavian, I am expecting something like a Timothy Nicholson 1976 (mother's maiden name Olafson) in the birth index.
And if you happen to not know your ancestry or have rumours of a great-grandfather from another country, it can be useful.
Beside from that, we get a lot more matches to work with, from people buying the tests only for the ethnicity estimate, unaware that they are quite speculative.