Yes and no. There's a diminishing return after a certain amount of modules and variables. It's because the tool is shitty and limited. For example there's no such thing as inherited or global variables between Terraform modules, you have to explicitly pass them, or else pass these clunky object variables that embed lots of data and types but not the actual variable concept. And at the end of the day you need one final root module which requires a bunch of files, so you might as well use a template.