Bandwidth dominates for bulk transfers: streaming 4K video at 25 Mbps, downloading a 50 GB game, backing up a database to object storage, or replicating data between datacenters. Here you care about total volume, so a wider pipe directly cuts the transfer time.
Bandwidth almost never matters for small, chatty workloads. Loading a typical API response of a few kilobytes is bound by latency and the number of round trips, not bandwidth. Adding more bandwidth to a connection that sends tiny requests gives you nothing.
The practical trade-off in system design is provisioning. Over-provisioning bandwidth wastes money on links and egress fees you never saturate. Under-provisioning causes queuing and packet drops during traffic spikes, which TCP interprets as congestion and backs off, making everything slower. Cloud egress bandwidth is metered and billed, so AWS, GCP, and Azure all charge per gigabyte leaving their network, which makes bandwidth a direct cost line, not just a performance concern.