How does it make sense that they won't be competitive in performance on the low end, but will be on the higher end?
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Only explanation I have is that per-core perf might be much stronger with Zen 6 than DMR, and in lower end skus where the boosts are also typically higher, you can really push that advantage, unlike in higher core count skus where you get limited by power-per-core much faster.
A little bit worryingly though, those lower end skus are also typically where the AI headnode skus are coming from. You don't need 192 or 256 cores for an AI headnode.