Yep that makes sense.
One thing we've seen with DuckDB, which they also mention in their docs, is that it's possible to 'over parallelize'. Beyond some number of cores, the overall workflow measured in wall time actually slows down when you add more CPUs, because of the overhead of parallelizing, despite them running at 100%.
We observe this even if we pull the data from S3 onto the local SSD before processing,
This is also a problem in classical HPC, there aren't very many algorithms that can scale linearly with cores. That's partially why so many HPC algorithms tend to be built on matrix multiplication and Monte Carlo, because those do tend to scale near arbitrarily.