Is it fair to say that if you have a high read\low write service, you could use this as a sort of local cache (with the added benefit that it also handles staleness through the sync) on the service itself, to reduce latency from not just calls to Postgres but other caches like Redis?
Right exactly — a sync engine like Electric maintains replicas of data wherever you like. So natural places are web apps, mobile apps, backend services, etc. Here's an example showing how to sync a table from PG to Redis https://github.com/electric-sql/electric/blob/main/examples/...
It's dramatically faster to read from a local copy of data vs. sending the query to Postgres and can eliminate a lot of network and db load as well.