Offhand, I would guess that it's good for I/O-bound tasks, where you can have lots of threads waiting for input that don't need CPU time. A busy database maybe.
The 8-core version only has 8 (each) ALUs, LSUs, and vector units. https://en.wikipedia.org/wiki/POWER9#Core If each core has 4 threads "running" on it, some of them are not going to be executing.