With ethernet it's for lots of reasons but a big one is not creating ground loops between distant equipment. If you didn't isolate the network cable would be sinking potentially amps of current between distant devices and that just isn't sustainable. You don't have this problem attaching USB between two devices.

And your computer already speaks the PCIe and thunderbolt. It has that probably on CPU. Here we have to receive USB, convert it to Ethernet. On much less up to date process nodes than your CPU.

Third, until very recently for even 10Gbit it meant using a usb4<->pcie bridge chip which itself was hot, to provide a generic pcie connection, which then talked to a conventional network chip, so it was a double hop: USB <-> pcie <-> nic. I don't know if 25Gbit to USB direct convert is available yet but we've seen a wave of vastly cheaper 10Gbit adapters come out that are single chip USB<->nic, probably not pcie at all, that are much much cooler. 25Gbit is probably still not here yet, maybe?

Latency was an order of magnitude higher than twisted pair but the throughput was greater than 10Gbps and I didn’t have to spend on 10GbE capable servers and network equipment. I vaguely remember that they had to be proper Thunderbolt not just USB-C but that could have changed it’s been quite a while.

But for all certified Thunderbolt 4 and 5 ports, this kind of networking support is a requirement. (It is optional with Thunderbolt 3.)

The rest is up to the operating system.