So the two are different because awk's call to read() is effectively the same as a read directly from a file, whereas copying is taking place through the pipe with the pipeline approach?
Basically you see a linear increase in time. If it was going to take a coffee break's worth of time one way, it will take a slightly longer coffee break worth of time the other. It is fairly rare that the additional time involved matters and there isn't something else that you should be doing anyway.
assuming foo only reads stdin so `foo file' isn't possible, is that with the latter the shell will open file for reading on file descriptor 0 (stdin) before execing foo and the only cost is the read(2)s that foo does directly from file.
With the needless cat we have cat having to read the bytes and then write(2) them whereupon foo reads them as before. So the number of system calls goes from R to R+W+R assuming all reads and writes use the same block size and more byte copying may be required.