On the flip side I don't remember who did it, but basically extracting textures on disk fixed all the performance issues UE5 has on some benchmarks(sorry for being vague, but I can't find the source material right now). But their assumption is in fact a sound one.

Yes. Its quite common for games to have mods that repack textures or significantly tweak the UE5 config at the moment - and its very common to see users using it when it doesn't actually affect their use cases.

As an aside, I do enjoy the modding community naming over multiple iterations of mods - "better loading" -> "better better loading" -> "best loading" -> "simplified loading" -> "x's simplified loading" -> "y's simplified loading" -> "z's better simplified loading". Where 'better' is often some undisclosed metric based on some untested assumptions.