The TEC is more than 100% 'efficient' - you get more heat out than power you put in. Though I would guess it's mainly there to get heat control that can span above, around, and slightly below ambient.
If you are reasonably above ambient and the control loop is well tuned things work well, unless you are significantly perturbing the system frequently.
Honestly, I didn’t ever ask. As the SWE on the project I just had to switch a DIO on/off based on the reading from an AIO. I just trusted that the EE and ME folks were making smart decisions around BOM.