> I find it hard to believe that the knowledge to manage a bunch of dedicated servers is that arcane that people wouldn't choose it for this kind of gigantic saving.

Managing servers is fine. Managing servers well is hard for the average person. Many hand-rolled hosting setups I've encountered includes fun gems such as:

- undocumented config drift.

- one unit of availability (downtime required for offline upgrades, resizing or maintenance)

- very out of date OS/libraries (usually due to the first two issues)

- generally awful security configurations. The easiest configuration being open ports for SSH and/or database connections, which probably have passwords (if they didn't you'd immediately be pwned)

Cloud architecture might be annoying and complex for many use-cases, but if you've ever been the person who had to pick up someone else's "pet" and start making changes or just maintaining it you'll know why the it can be nice to have cloud arch put some of their constraints on how infra is provisioned and be willing to pay for it.