I've only read about Concentrated Liquidity pools recently while reading the Docs of Bluefin, a spot and perps dex on Sui. There's auto-rebalancing feature for certain pools when the chosen price range is out of the market price. In theory, this feature makes sense but I don't know how it'll perform in practice, especially when the market is really volatile or if associated fees are involved with every rebalancing.
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You are right. It probably depends on how often rebalancing happens, how expensive fees are, and how big the positions are. From what I know, fees on Sui are small, and if positions are big enough, it may be worth it even in volatile markets and in tighter ranges.
Yes, I think that part helps. If the fees are small then it wouldn't cost much even during volatile periods. Volume on the other seems moderate but I guess there's room for growth with new networks.