In reality there are other operations you wanna do on your files. Concurrent access, updates, deletes are probably not as great. Backing up a database with terrabytes of binaries inside is also non-trivial. Backing up terrabytes of files is a lot simpler.
So absolutely it is a network problem which means custom fiber?
I don't know enough about custom fiber to know whether that will help stretch past being network-bottlenecked — most NICs max out at 10 gigabits/second, but I've heard of faster ones. Eventually you might be able to make yourself disk-limited... Either way, backing up one file is probably easier than backing up a zillion files scattered around the filesystem.
[1]: https://www.cyberciti.biz/faq/linux-unix-apple-osx-bsd-rsync...
Was this the tool & thread you mean? https://news.ycombinator.com/item?id=34303497?