Hi -
You're correct - both CPU utilization (% CPU) and runlength queue (e.g. from "uptime" or "top") are both extremely useful measures.
And you're also correct that, in general, "two's a crowd" (from basic queueing theory, not just Microsoft

).
But there are no easy answers. You need to benchmark your system, determine if you're CPU bound (often the case with high %CPU), memory bound or I/O bound (high runlength queue often indicates either/both) and take appropriate steps.
In general, purchasing more RAM is often the first hardware you'd upgrade; purchasing more/better CPUs is often the last hardware you'd upgrade. But always:
a) establish a reliable baseline,
b) determine the specific problem(s), and
c) try to determine the root cause first.
IMHO ...