Yes, Spark does instanced rendering of quads, one covering each Gaussian splat. The sorting is done by 1) calculating sort distance for every splat on the GPU, 2) reading it back to the CPU as float16s, 3) doing a 1-pass bucket sort to get an ordering of all the splats from back to front.
On most newer devices the sorting can happen pretty much every frame with approx 1 frame latency, and runs in parallel on a Web Worker. So the sorting itself has minimal performance impact, and because of that Spark can do fully dynamic 3DGS where every splat can move independently each frame!
On some older Android devices it can be a few frames worth of latency, and in that case you could say it's amortized over a few frames. But since it all happens in parallel there's no real impact to the overall rendering performance. I expect for most devices the sorting in Spark is mostly a solved problem, especially with increasing memory bandwidth and shared CPU-GPU memory.