At what scale would you want to use RDS rather than using an EC2 instance with Postgres installed? Assuming that the operator has the skills to manage Postgres. It's not like RDS does something complex like Geodistribution, right? Also what is the scaling like? Is it automatic? How quickly can you handle more connections? Because my understanding was that it was slow. I did have a play with their RDS Postgres nonths…
If you're a tiny startup or hobby with literally no money, it might make sense for you to manage it yourself because you have no choice.
Once you have some money and a viable business, then your value is no longer your ability to spend your time running Postgres, ensuring backups and restores work, creating replicas, upgrading software, and setting up all of the monitoring tools. You provide MUCH more value spending your time and abilities building things that are core to the business that let you make money and grow.
No doubt you can do it all and save some cash. But you have to do it regularly if you want confidence that everything you have built still works. With RDS, you pay them some extra for a near guarantee that it will all just work 100% of the time.
Once you become a large company with tons of engineers and you start to bump into limits of RDS, then it might make sense to run it yourself again. It is a significant burden to do it correctly 100% of the time. Your entire business can fail if you don't do your job right.