Yes, this is absolutely critical. Atomic ops (including taking a lock) when you have a large number of cores just completely kills performance.
>Do they make nics with 128 queues now?
Yep, the Intel E810 100gbit controller supports 256 queue pairs for just one example.
Hope you can process that traffic pretty fast, the amount of memory dedicated to packet buffers with that many queues is making my head spin a bit.