Optimize to handling of large outputs in notebooks

[DonJayamanne]

Fixes #11031

[codecov-commenter]

Codecov Report

Merging #11350 (c408927) into main (eaf40cb) will decrease coverage by 0%.
The diff coverage is 85%.

@@          Coverage Diff           @@
##            main   #11350   +/-   ##
======================================
- Coverage     62%      62%   -1%     
======================================
  Files        483      483           
  Lines      34224    34214   -10     
  Branches    5525     5523    -2     
======================================
- Hits       21490    21475   -15     
- Misses     10696    10697    +1     
- Partials    2038     2042    +4     

Impacted Files	Coverage Δ
...c/kernels/execution/cellExecutionMessageHandler.ts	77% <85%> (-1%)	⬇️
src/kernels/execution/notebookUpdater.ts	88% <0%> (-8%)	⬇️
src/platform/common/cancellation.ts	64% <0%> (-4%)	⬇️
...rc/notebooks/controllers/controllerRegistration.ts	85% <0%> (-3%)	⬇️
src/kernels/jupyter/baseKernelConnectionWrapper.ts	35% <0%> (-3%)	⬇️
...c/platform/common/process/pythonDaemonPool.node.ts	78% <0%> (-2%)	⬇️
src/kernels/jupyter/jupyterKernelService.node.ts	72% <0%> (-2%)	⬇️
src/kernels/kernelDependencyService.node.ts	83% <0%> (-2%)	⬇️
src/kernels/common/baseJupyterSession.ts	80% <0%> (-1%)	⬇️
... and 4 more

[roblourens]

🎉🎉🎉