Earlier quoted context omitted.
Because the cloud has economies of scale and benefits from specialization (cheaper power, bulk buying prices, remote land prices, etc) Hence, some of these saving should be passed on to consumers and it should be cheaper. The counter argument is that the cloud is over-engineered (redundancy, backups, better software) for enterprise customers. You u are paying for all these benefits whether u want to or not.
I've seen just the opposite. A VPS from a cloud provider is often 2-3x the cost of an equivalent Linode.
Two years ago you would be perfectly correct. The cheapest AWS option back then would be a micro EC2 instance at around $20 per month IIRC.