Yeah. Using the Kalman filter just to determine the position from noisy position measurements really undercuts the capability of the filter to use system physics to estimate the true state.
In one of the most common applications of Kalman filters, autonomous robots (e.g., a robot vacuum or a commercial drone), the filters are around 9 to 12 dimensions.
Right, in addition to the position you usually want the velocity, and sometimes also the acceleration, in all dimensions. More ambitious (or optimistic) practitioners could add more sensor measurements, like gyroscopes.
In one of the most common applications of Kalman filters, autonomous robots (e.g., a robot vacuum or a commercial drone), the filters are around 9 to 12 dimensions.