it is indeed.
you are more reffering to oversubscription by customer count whilst I am reffering to oversubscription of the bandwidth itself.
VM dont define a contention ratio which in this case goes against them. We will leave it be

VM shouldnt really be applying a one size fits all policy across their network in regards to user utilisation as each area is very small and will have variance. We also both know it isnt an endless upgrade path it is just more than usual anyone can only use a limited amount of bandwidth, if enough upgrading is done then it wont be saturated. Whether it takes 2 node splits or 50 node splits.
My example is like this.
I have 20 pipes 10mbit each.
On the first 19 pipes I manage to get 40 customers on without saturation and makes me a tidy profit.
The 20th pipe I put 10 on and its 90% utilised. I would personally at that point suspend new sales and fund a 21st pipe. The nature of the business is these kind of things happen and would be morally wrong to squeeze 40 on that pipe anyway. To just put another 30 on anyway and claim done nothing wrong because it worked for 19 other pipes is just poor capacity management.