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Love how Hoshoryu counters grips he doesn't like with moves like this overhook throw-by and elbow prop.

Would a sumo wrestler who was seriously in shape do well?

These guys are seriously in shape

But they seem tpo be carrying a lot of fat. That mass is presumably an essential advantage, but of that mass was muscle instead of fat, wouldn't they be stronger? I'm thinking of the body type of a modern heavyweight weight-lifter. But maybe a smaller muscle mass supplemented with fat is better?

These guys max out or exceed the natural limit of human muscle mass. The fat is useful in itself & allows them to eke out the last few kilos of muscle their bodies can sustain. Their shoulder girdles are less muscular than a superheavy powerlifter but not much. Legs, neck, & back are comparable.

For instance the winner here 100% used steroids to get his physique (though his current stack is unknown). Regardless, he's 150kg (I believe after some recent weight gain that was 50/50 fat/muscle) which is close to the max for his 188cm while staying fast & agile.