I guess the event translation step is not needed but I don't see what this gives you over what many of us do today: shove Hono/Express/Fastify into a lambda with some shim/adapter.
It annoys me that when I started with Lambda (2019-ish?) it (at least seemed to) advised against this. I went down the "one function per route/method" path but always disliked it and it added a decent amount of complexity for packaging/deploying. A year or so ago I abandoned that and switched to Fastify (one function instead of 100+) and never looked back. It also makes it easier to test in dev/local and gives me more flexibility to move to a different host in the future.
Weird to see them come around on this but again, what does this give me over what I currently do? It looks like they are just making migrating an existing stack easier (it wasn't that difficult before IMHO).