What exactly is the serverless grahpql endpoint doing

In the documentation, it is stated that Redwood’s GraphQL endpoint is effectively “just another (Lambda) function”.

Is this function single-handedly performing a bunch of operations like logging, Auth, directive handling, RBAC/ABAC, cron-jobs, etc.

If yes. does this not defy the standard rule that a serverless function should perform a single “small” task?

Redwood prefers / recommends serverless to serverful. In case, we have a full-fledged enterprise application, is it possible to implement it using serverless Lambdas? If yes, would you recommend it?

Kindly explain. Thanks.