I have a test setup with 400 clients connected to one central point. A 50 meg file added centrally gets synced to the 400 clients at about 2 Gb/s, takes a minute or so for everyone to be in sync. The limitation here (in my setup) is mostly that the 400 test clients are running on the same (beefy) VM, so I/O per client is limited.
So it can work perfectly fine, but the defaults are not great for the use case. You will need to turn off temp indexes, progress updates, reduce pullers on the clients.