The title. Why do we need an additional option to chose whether we want to make Home-Manager place the files at ~/.config/nvim? AFAICS, if programs.nvchad.hm-activation = false; then we just add the nvim binary to the PATH and add the .desktop file, which IMO doesn't make any sense to have a desktop file saying NvChad if in reality the config is not being applied.
If users want to install nvim but don't want to use NvChad's config then they can use programs.neovim.