It does beg the question, but your point about orgs "incorrectly" thinking they could move some parts of their portfolio off-cloud begs several more. I would like to see it fleshed out a bit, into some high level rules of thumb, to guide, e.g.
IaaS Cloud for:
Flexibility; very spikey compute; modest to normal egress; low to moderate interruptible AI workloads (use spot); modest to normal storage, large if properly tiered and tradeoffs ok; lower effort HA; client reqs (but make them pay for it); security model (non-portable); Integrated turnkey DBaaS;
Iff you have FinOps, careful scale-in policies for DevOps, or are stuck non-portable
Off-cloud (CDN, Hyperscale compute, *aaS, on-prem)
Fit on a $5 VPS; Have simpler neat 12 factor PaaSy container workloads (Fly/Vercel); Well-defined heavy workloads; heavy egress (use CDN); heavy non-interruptible AI/specialist compute; large storage (CDN for objects) or compute-local with high IO (colo, onprem); HA with more effort; Specialist DB or boutique DBaaS (Supabase); Portable security (k8s)
Iff you have invested in portability (containers, k8s, FaaS frameworks, interruptible workloads, high level APIs), HA testing and appopriate security