Is creating a custom cursor in the player settings bad?

I have gone through a lot of custom cursor posts and none of them seem to use the simple drag and drop method of adding in a new cursor through the player settings and instead use a lot of GUI code. Is there some inherent downside to doing it the easy way?

There is no much code for that.

Firstly inherit from interfaces to your class: IBeginDragHandler, IEndDragHandler, IDragHandler

Then add:

public Texture2D cursorTexture;

public void OnBeginDrag (PointerEventData eventData)
{
     SetNewCursor();
}

public void OnDrag (PointerEventData eventData)
{
     //Do whatever you want.
}

public void OnEndDrag (PointerEventData eventData)
{
     BackToNormalCursor();
}

void SetNewCursor()
{
	Cursor.SetCursor(cursorTexture, Vector2.zero, CursorMode.Auto);
}

void BackToNormalCursor()
{
	Cursor.SetCursor(null, Vector2.zero, CursorMode.Auto);
}

As you can see there is no much code and you can easly add more fields with different cursor images for differend situations. Just remember to import cursor image as “Cursor”.