While this is true, in practice for the vast majority of applications this is a good tradeoff since the relative slowdown of L3 cache vs. the improvements in re

While this is true, in practice for the vast majority of applications this is a good tradeoff since the relative slowdown of L3 cache vs. the improvements in reductions of cache misses ends up being tiny:huge. I'd expect the workloads that could suffer (all else equal) would be something like SIMD optimized matrix multiply where you're always able to prefetch the elements needed into cache effectively and memory access tends to be sequential. But those slight losses would likely be dwarfed by the improved core clocks, etc.