About pinched vs. plumb bows (and sterns), not the amount of overhang (though the two may be related somewhat).
Having some sort of bulge in the front and rear I reason helps with edged turns. When you edge left you turn right. The more the bulge and the closer to the cockpit, the easier the bow and stern release and the boats turns faster (all else being equal). Coincidentally, pinched bows/sterns often go with more pronounced bulge compared to plumb ones. There are also effects on how the boat handles waves and surfing.
I don't think one is better in absolute terms. But one is better in specific scenarios. Anyway, I don't know enough so I find this discussion vey educational ;)
Then there is the "figure 8" shaped kayaks - the Warren light craft designs, that are fat front and rear (above water) and skinny in the middle, then plumb and slender below water...
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