1/4th was merely an example for one resource type, and a suitable limit may be much lower depending on the cluster and workloads. The point is that a limit set to 1/workloads guarantees wasted resources, and should be set significantly higher based on realistic workloads, while still ensuring that it takes N workloads to consume all resource to average out the risk of peak demand collisions.

> This assumes that the scheduled workloads are created equal which isn't the case.

This particular allocation technique benefits from scheduled workloads not being equal as equality would increase likelihood of peak demand collisions.