Let’s say we have 1,000 nodes in a network that does 1,000 transactions per second.
If we shard the data, such that each node only needs to process 10 transactions per second — while trusting the remaining nodes on the other 990 transactions — how is this different from just reducing the number of nodes to 10, and having each node process all 1,000 transactions?
In both cases the entire network only needs to process 10,000 transactions per second, and in both cases the network breaks down if 10 or more nodes collude.
Because in the sharded example, only the shard suffers a break down, not the entire network, if the nodes collude. It also allows people to run smaller nodes on cheap hardware, this increasing the potential number of nodes in the network.
Well the breakdown of a share has differing effects depending on the consensus rules, same for the entire network. I can't answer that unless you specify which consensus we are talking about.