That's actually kind of a myth nowadays. For example the honest answer to the classic C10K question (how do you write a webserver that can serve 10000 requests concurrently) is that you spawn 10k threads and let the OS scheduler handle it and it'll be fine.
Even a modern Linux kernel on modern hardware will struggle with 10k processes if those processes are doing nontrivial (i.e. syscall-effecting) work. But that benchmark is what, 10 or 15 years old now? Contemporary benchmarks target 100k connections per server (with some constraints).
