Comment by nickcw

Here is some speculation:

SFTP was designed as a remote file system system access protocol rather than transfer a single file like scp.

I suspect that the root of the problem is that SFTP works over a single SSH channel. SSH connections can have multiple channels but usually the server binds a single channel to a single executable so it makes sense to use only a single channel.

Everything flows from that decision - packetisation becomes necessary otherwise you have to wait for all the files to transfer before you can do anything else (eg list a directory) and that is no good for your remote filesystem access.

Perhaps the packets could have been streamed but the way it works is more like an RPC protocol with requests and responses. Each request has a serial number which is copied to the response. This means the client can have many requests in-flight.

There was a proposal for rclone to use scp for the data connections. So we'd use sftp for the day to day file listings, creating directories etc, but do actual file transfers with scp. Scp uses one SSH channel per file so doesn't suffer from the same problems as sftp. I think we abandoned that idea though as many sftp servers aren't configured with scp as well. Also modern versions of OpenSSH (OpenSSH 9.0 released April 2022) use SFTP instead of scp anyway. This was done to fix various vulnerabilities in scp as I understand.