Is there a plausible explanation why egress fees from cloud providers costs around $0.1/GB? "Traditional" server providers such as Hetzner are able to offer bandwidth at orders of magnitude lower price (eg. $1.1/TB). I understand that cloud providers may have better interconnects or better uptimes, but that doesn't justify the magnitudes higher pricing.
People under pressure make short term optimizations at the expense of long term strategy. There's nothing more to it. AWS reduced compute and IT expenses in the next few fiscal years, so people jumped all in on it. Solve the problem now. Someone will fix it in the future.