That's precisely the case: instead of owning hw, witch per-machine it's a kind-of monolith (even counting blades and other modular solution), you deploy a full OS or half-full to run just a single service, on top of another "OS". Of course yes, this is the cloud model, and is also the ancient and deprecated mainframe model, with much more added complexity and no unique ownership with an enormously big attack surface.
Various return of experience prove that cloud model is not cheap nor reliable than owning iron, it's just fast since you live on the shoulders of someone else. A speed you will pay at an unknown point in time when something happen and you have zero control other that.
DevOps meaning the Devs taking over the Ops without having the needed competences, it's a modern recipe to a failing digital ecosystems and we witnessed that more and more with various "biblical outages" from "Roomba devices briked due to an AWS mishap, cars of a certain vendor with a slice or RCEs, payment systems outages, ... a resilient infra it's not a centrally managed decentralized infra, it's a vast and diverse ecosystem interoperating with open and standard tools and protocols. Classic mail or Usenet infra are resilient, GMail backed by Alphabet infra is not.
What if Azure tomorrow collapse? What's the impact? What's the attack surface of living on the shoulder of someone else, typically much bigger than you and often in other countries where getting even legal protections is costly and complex?
Declarative systems on iron means you can replicate your infra ALONE on the iron, VMs meaning you need much more resources and you do not even know the entire stack of your infra, you can't essentially replicate nothing. VMs/images are still made the classical '80s style semi-manual way with some automation written by a dev knowing just how to manage his/her own desktop a bit and others will use it careless "it's easy to destroy and re-start", as a result we have seen in production images with someone unknown SSH authorized keys because to be quick someone pick the first ready made image from Google Search and add just few things, we are near the level of crap of the dot-com bubble, with MUCH more complexity and weight.