Extraction efficiency can improve by using thinner water/grist ratios and fermentability can be increased slightly with thinner ratios. But, thinner ratios mean that the mash tun size has to increase to hold that additional water. Conversely, if a thinner ratio is employed and the tun size cannot be increased, then the batch size must be reduced.
Another consideration for mash thickness is that is the mashing water alkalinity is a little high, adding more water means your water will consume more of the grist acids and the mash pH will move higher than it would be at a thicker ratio. This aspect of mash water/grist ratio can be played with to help produce a desirable mash pH. Bru'n Water is the tool to use to assess that effect.
Don't get carried away with the ratio. You should keep it somewhere in the 1 to 2 qt/lb range for adequate results.