In practice it's of course more complicated. Any rewrite will also introduce a lot of bugs, so short-term the rewrite will probably have a negative result. I think it's a weird decision for Ubuntu to switch to uutils when it is still incomplete and probably buggier than the GNU version, but perhaps in the long run (5+ / 10+ years?) it might turn out to be the better option.
It's also important to keep the wider ecosystem in mind. Even if C and Rust were functionally identical, a rewrite could still make sense. Imagine if coreutils was written in a language like COBOL: the language choice would severely restrict the number of potential contributors. Who's going to learn it solely for the thankless job of maintaining boring tooling like coreutils? With the current generation of OSS maintainers slowly dying off, you need to recruit new (younger) developers to take over. If all the kids love Rust and hate C, then perhaps a switch to Rust might be a necessary evil to ensure we'll have well-maintained coreutils for another generation. You still need to be careful to avoid the fad of the day, but I think it's pretty clear by now that Rust is here to stay.
As an aside, as [1] shows, the "it'll at best be equal" argument is factually incorrect. There is no good reason to believe that GNU coreutils could not possibly be improved upon.