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I understand that one approach to dispatching requests at the load balancer is superior to the other, just as I understand that one way of absorbing requests at the app server is better than the other.

Most things are inferior to other substitutable things! :)

That's a mild way of putting it. With the current way of dispatching requests you need exponentially many servers to handle the same load at the same queuing time, if your application uses too much memory to run multiple instances concurrently on a single server.

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