IMHO It still all hinges on users saying “I don’t trust this big American multinational, AWS, (who despite their policies and contracts could be subject to all manner of corrupt insiders and secret political pressures) - but I do trust this big American multinational, Intel, for some reason”

To me, those trust boundaries are in the same place.

It's not necessarily 'AWS' - for example, maybe you trust AWS but realise they have lots of rack monkeys so you can't trust that everyone in their datacentres is trustworthy. Especially say if you have to run in other regions. Or how about in your own data centres in a big company; do you trust everyone who works in all your datacentres with your most sensitive data?