Docker containers can be up to 10gb, traditional lambdas are still limited to 250mb.
This is really, really exciting!
We use very little serverless at the moment, because the three clouds we need to deploy to have infuriating differences between their execution and deployment environments. Eg. How they manage dependancies, the runtimes, how you describe and deploy each function.
Compared at least to K8 where the containers you build run just fine wherever you put them.
Amazon is not going to change software development per se, but at least at some of their customers' sites calculations will be done how many hours can be allocated for a n% reduction in runtime. So, if you live in an amazon-universe, this is a real "game changer". Bystanders may chuckle ;)
All else being equal, faster services are cheaper to run. Faster services can service more requests per compute/memory resource, which means you don't have to buy as many servers/containers/whatever. This is particularly important if you're being billed by the ms, which is the context we're talking about here.