If you have to use beefy lambda instances with multi-threaded workloads? I don't think lambda is the right tool for the job there. I'm not saying it has no value - but that's the opposite of playing to its strengths.
A Lambda deployment has the advantage that no one needs to manage it, and faults are isolated between clients. You could argue that if you need these properties your engineering organization has deeper flaws, and you'd be right, but in many companies engineers need to make do with what they get.
I assure you that somebody does need to manage it, and if nobody is you are going to eventually hit the wall at speed.
I've been called into SEV-1 issues where a Lambda-based web app spontaneously disappeared. (Seasoned AWS heads can probably make a guess as to why.)
You can always tell who has had to live with non-trivial serverless systems in Prod and who is just parroting the marketing copy.