This announcement is, of course, the result of adding a caching layer on top of EFS. Naturally. But because they don't mention "throughput" and only mention "latency" I'm betting they have not used the cache layer to increase throughput.
I'll only ever recommend EFS if your data is very small and the throughput requirements are negligible.
The reason was metadata only, which caps out at about ~40mbs. Raw rear speed is great, but any metadata ops cap out quite hard.
We had to hack together a special NFS client to list the contents of the drive using as few metadata operations as possible, then have a separate step to copy the data.
This is actually a more common use case than I had imagined just one year ago. It would work today, and there are a few optimizations we're doing short term on file locking that will make this much better. If you reach out to AWS support or your TAM we can share more information and time lines under NDA.
That said, accessing SQLite databases is surprisingly disk IO heavy. I haven't gone too deeply into measuring the effect, but it seems the core issue is that traditional RDBS wire protocols are better than SQLite's disk accesses wrapped over NFS (or whatever connection the lambda/EFS join is). Stuff especially starts to break down when you need any sort of concurrent access. The small overhead for locking/unlocking files can quickly become awful when multiplied by the EFS latency, so you really do need extremely fine sharding.