When should you use Playwright component testing vs full E2E tests?

Playwright now supports component testing (React/Vue/Svelte) which blurs the line with E2E tests. In practice I'm unsure where to draw the boundary: - A component that fires API calls — test with mocks at component level or test the real flow E2E? - A complex form with lots of validation — component test or page test? - Navigation flows that span multiple pages — obviously E2E, but at what granularity? I don't want to end up with a testing layer nobody maintains. How has your team decided this?