Earlier quoted context omitted.
>> deployed to over 2000 locations Were there 2000 independent systems / SQL server instances running or just one? 2K separate deployments to manage (with 1K users each), does sound a little scary. Of course, perhaps that is not what is going on at all.
Which is actually kinda funny, because some of the "complex" technology the OP is railing against allows us today to manage thousands of databases both easily and efficiently... IF the systems are built with a more current approach. This is why I try to understand ALL of the motivations for disruptive change and not immediately assume incompetence and self-interest bordering on criminal.
Write a cloud formation / terraform template that involves O(1) machines and deploy 2000 identical copies.
Option two:
Write a template that deploys O(N = 2000) interdependent services across roughly 3-10x as many machines, and deploy one copy.
From what I can tell, you are arguing for option 2. It is strictly worse than option one. In addition to being more complex, it has a few nines less reliability, and costs 3-10x more for the hardware. The dev and CI hardware budgets is going to be 10x more because you can't test it on one machine, and it has bugs that only manifest at scale.
Source: I do this for a living, and have been on both sides of this fence. Option 1 typically has 5-6 nines (measured in chance a given customer sees a 10 second outage), option 2 never gets past 3-4 nines (measured in at least N% of customers are not seeing an outage).
The modern vs old technology debate has nothing to do with this tradeoff. If you want, you can build option 2 with EJB + CORBA on an IBM mainframe, and option 1 with rust and json on an exokernel FAAS.