This is a great example of outages looking different from the perspective of the operator vs the user. Because there's many shards the blast radius of failure is contained to a small subset of users but for those users it's an outage. The way it's designed you can't lose any shards without impacting users. Compare to say Elasticsearch where it's possible to lose nodes and lose shards without the user noticing. One approach isn't universally better than the other.
Of course. On the other hand, is it fair to call it a single point of failure if it being down only affects a shard? Maybe within the shard indeed. Or for a single customer indeed. Not sure if we have terminology to indicate one or the other.