This always sounds good on paper and this is very common lore, but then when you get into production escalations a very common problem is a lot of software depends on limits for autoconfiguration of thread pools and even several runtimes (go and java for example, at least .net is mentioned in the article), yes you can usually set them with a flag but people have to know this, communicate it, enforce it. Basically replace adhoc what limits is doing for you automatically configuration wise
So this just all assumes you have a setup where all teams communicate the necessary information perfectly.. what happens in practice is workloads degrade at edge cases because there are 256 threads running for a thread pool instead of 4.