In short, olive oil and palm oil are not really comparable. They would both be best used in some combination to yield a product with both moisturizing and lathering qualities.
I've been using castile soap for a while now, and, while it's true that it doesn't lather as much as some other soaps, that's never really bothered me.
Lather is often associated with a soap's cleansing qualities, which is usually desirable. But some people prefer their soap to be more moisturizing than cleansing.
I personally find pure castile soap to be too moisturizing and not cleansing enough. I prefer a more balanced soap with a bit of both qualities.
My understanding was that, when companies add lathering agents to their products, it's the same as dyes and fragrances: really just there for cosmetic purposes.
It's all a balancing act as to how strong of a soap you want compared to damaging.
https://www.hollandandbarrett.com/shop/product/oliva-pure-ol...
I've been using this [0] as a replacement which has been good but the Laurel blend seems to dry my skin more than the straight olive oil KMF bars did.
[0] https://www.amazon.com/Aleppo-Soap-Hand-made-All-Natural-12-...
But yeah presumably.