True. They can make more power with a 118 kWh battery easily, without stressing the cells as much. Tesla is pushing those 18650s hard, over 8C discharge, 818 kW out of a ~99 kwhr battery. Hopefully we don't see early battery degradation or failures.
I'm interested to see how fast the Plaid can charge once we get v4 superchargers! The model 3 manages 250 kW, with only a 96S battery and 80 kwhr. The Plaid is 110S, so at 250 kW, it's pulling 13% less current already. So, if the current was the limit, the plaid should easily be able to charge 13% more than 250 kW. If the cells are the limit, then with a 25% larger battery, it should be able to do 25% kW, or 312 kW.