I'm with you for most of this, but I do think one element you are missing here is that the ever-increasing scale is at least in part to blame as well. Yes, software is vastly more complicated today, and perhaps suffers more errors, although I would want to see data on that. But, like, YouTube in 2021 is a vastly more difficult engineering challenge than YouTube circa 2008. The same can be said for any site with users numbering now in the millions. E.g., not only have Netflix's streaming user counts exploded since 2007 when it launched, the quality expected now of on-demand streaming has strongly increased as well.
Having said that, in reality that scale applies only to a small minority of products. I think an additional part of the real problem is the ever-present Cargo-Cult Oriented Programming model we've had for a while. I am sure container orchestration is important and maybe even required at places at Google scale. But I hear far too much about its use; it seems that nearly everyone is using it, and I really don't understand why. There seems to be a bit of a keeping-up-with-the-Jones effect, like people would be embarrassed to say that their startup relies on platforms that aren't the latest and greatest. Picking technologies because they sound cool on a resume or at a tech conference, instead of their use being appropriate for the circumstances, seems like a common issue.