Recently moved some workloads from GCP to a dedicated Hetzner box with 12900k, 128GB ram and 2TB NVME raid. This thing SCREAMS, running e.g Postgres with the same capacity in GCP would probbably cost > $1k/mo. Hetzner takes around 120 EUR. Also the bandwidht is like 10x cheaper with much larger free tier.
That being said, I run much smaller projects and servers and have not worked at a scale that really requires heavy workloads that generates thousands of monthly bills at GCP.
So I think most devs being conditioned to start their first projects on the free-tiers of most cloud providers makes it really difficult for them to move to their own servers when they need it.