I keep a cheap PVC poncho in my packs in case it starts raining on me while I am out hiking.
The ones I get tend to last about 1 use before tearing. Duct tape repairs them, but they eventually have to be tossed. It is often just easier to buy a new one.
There are two issues with them. The first is that they only cover your torso. Your arms and legs will get wet. No way around that. Might be less of an issue in some respects than you might think, but you will get wet. It will keep a pack dry though, and that is a big deal. If it is cold out, being wet is miserable, and potentially fatal.
The second issue is that as others have mentioned they are really warm if it is warm out. You will seriously sweat under one unless it is fairly cool. One trick I have found helps is to ventilate by flapping my arms up and down now and then. It helps to get some fresh air under the poncho. Not perfect, but I have found it helps.
A military issue poncho is heavy and takes up a lot of space. No way it is going in my fanny pack. A disposable poncho will.
I have a polyethylene jacket i got from Walmart that is pretty waterproof and has sleeves and an elastic hood. I have worn it under the poncho a couple times to keep my sleeves dry. Hot but works. I recently bought a cheap nylon pack cover for my pack. My next try at this is not to use a poncho at all. Just the PE jacket and the pack cover.
Legs will still get wet unless I buy something waterproof to put over them.
I don't know of anything that is waterproof that actually breathes enough not to be uncomfortably warm underneath.