From what I can tell, that was a bug and it has been fixed. I regularly use data with much more than 32k tokens in Gemini with my Workspace account, and context window issues are not a thing anymore.
What does set Gemini via Workspace apart from other offerings like AI Studio is the nerfed output limit and safety filters. Also, I never got Gemini to ground replies in Google search, except when in Deep Research, or to execute code. Finally, Workspace users of Gemini either cannot keep their chat history, or have to keep the entire history for a predetermined period (deleting individual chats is not allowed).
What does set Gemini via Workspace apart from other offerings like AI Studio is the nerfed output limit and safety filters. Also, I never got Gemini to ground replies in Google search, except when in Deep Research, or to execute code. Finally, Workspace users of Gemini either cannot keep their chat history, or have to keep the entire history for a predetermined period (deleting individual chats is not allowed).