In reality you don't actually need CO in soap. But if you want to replace it for similar qualities, you can use Babasuu oil or Palm KERNAL Oil which is NOT to be confused with other palms.
Besides being harsh on the skin, more so for some people than with other people, so it does vary, it also contributes to the soap being more water soluble (hydrophylic) than soap made with some other oils, meaning it melts faster in the presence of water. That's a good thing in laundry soap, but for bathing, often people want a bar of soap that is long lasting.
As far as higher percentages of CO, I believe (based on personal experience) that the overall recipe contributes a lot to counteracting the harshness of CO. But the soaps I made with higher CO content, the recipes contained a complex mix of oils/ingredients that made it difficult to determine what was the deciding factor, although I do believe in one case, it was the addition of egg yolks and in another I think including lanolin may have been one contributing factor.
Aside from the fact that extra oils in the bar of soap (Superfat) decreases bubbles, it also contributes to soap scum, and it also contributes to clogged plumbing pipes. Those are some reasons people tend to prefer a lower SF value.
Another reason is that when you use the default settings for lye in your calculator of choice, there is already a hidden superfat ON TOP OF that default 5% SF setting most
lye calculators favor. An explanation of how the hidden SF exists and why is found in this post by DeeAnna:
Zero percent superfat?
I believe environment is another factor that affects our skin. In high humidity, the surface of my skin does not dry out as quickly. But indoors with AC and de-humidification, my skin can dry out pretty fast. So a harsher soap is not desirable for me in the summer if I am indoors here in my home. In Hawaii, my skin always felt pretty moist, except when I used salt soap, which incidentally had a 20% SF. It still bothers me 2 years later with a very long cure, but that is not the case for all people. Some people really like how a salt bar feels to their skin.