This seems like the important distinction: making the infrastructure look like one database to the application is different from making it behave like one unrestricted relational database.
At what point does hiding the sharding become counterproductive? I imagine teams still need a fairly deep understanding of shard keys, query routing, and failure modes to avoid accidentally expensive cross-shard operations.
Yes!
Distributed systems introduce severe restrictions on what can be reasonably done at scale. Having a single connection string is one thing, being able to do a massive JOIN is another (and should only be ever done in analytical databases).
The question is not "when sharding becomes counter-productive" but "when it starts making sense".
With sharding something somewhere has to know how to route queries to subsets of data. So it is a complexity price paid for being able to scale. If one can avoid paying this cost then he should.
And USUALLY cross-shard queries are not just expensive but simply impossible in operational clusters. Like, if you do COUNT on a table, you only count within a single db shard table.