RE: "This adapter does not directly support ANY OTHER types of displays, even with additional adapters."
I can make an educated guess as to why. Thunderbolt 1 & 2 ports on Macs featured backwards compatibility with Mini DisplayPort. Plug in a Mini DisplayPort device, and it would "just work". If you plugged Thunderbolt 1 or 2 devices into a Mac, whichever Thunderbolt device was at the end of the Thunderbolt part of the chain had the responsibility to extract the DisplayPort signal that was being carried inside of the Thunderbolt signal – so the Mini DisplayPort device was none the wiser.
Doing this in the Thunderbolt 3-to-2 adapter would have added complexity (and possibly cost) to the adapter. Since that adapter sells for $50, and you can get third-party USB-C to Mini DisplayPort cables for $20 or less, there wouldn't be a whole lot of demand among knowledgable customers for using that adapter solely for the purpose of connecting a Mini DisplayPort display (or Mini DisplayPort to whatever adapter).
So I think there was a conscious decision to leave baclwards compatibility with Mini DisplayPort devices out. Thunderbolt displays still work because they're expecting to receive their DisplayPort signals encapsulated inside of a Thunderbolt signal.