The prices seem cheaper than Digital Ocean and AWS Lightsail. What's the catch ?
Hetzner was launched [or may be got popular] after DigitalOcean took off. Since then they priced their boxes competitively relative to DO. A little bit less. That's still holding. Also note that at that time hosting in Europe wasn't a popular option, unlike what we see now.
Dedicated servers there were an option way before DigitalOcean, if I remember correctly (I recall at one point having some Linode and some Hetzner servers, DigitalOcean was not in the picture).