Yes, that has roughly been my experience. The application throughput offered by IPFS is quite low while the packet throughput is very high. I was experiencing 5-15% packet loss over my internet connection while running IPFS. I'm not sure if a bandwidth limit would even help or if it is related to number of connections.
1. IPFS's bandwidth is so low that it is unusable.
2. IPFS's bandwidth usage is so high that it makes the network unusable.