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What is the difference between this and Signal?
Deltachat basically turns emails into instant messaging, so nobody needs to set up servers or instances, self hosters just need a working SMTP
Since the email traffic increases a lot (every message you send counts as an email), some providers might block your account after a very short while, on suspicion of some sort of bad behavior.
So... Its worse?
In some ways (initial configuration, relying on mail provider), yes.
to start with, Signal is centralized (and prune to change business model and privacy policy any time in the future) requires phone numbers, not anonymous, bad multi-device support, hard to have multiple accounts (does it has multi-account support at all?)