Receiving "chunks" of data via MQTT and adding to Dashboard chart

I do. I see it as an easy way to achieve low code/no code. But that all comes with the cost and side effects.

Seems to me you do know. This is the right way. But definitely not shortest or easiest.

There's no answer to question about how much data is too much. It all depends on many many factors and can be settled per case only if all factors are known.