Hi, I work on Lakebase (but not on storage), here's how I understand it.

For Lakebase and Neon, our architecture needs the caching layer regardless (what we call Pageservers). Performing reads from S3 directly is too slow so we reconstruct pages and keep them on an nvme server for faster querying. Changing the format on S3 to be Parquet effectively introduces no additional copies over our existing architecture