Their problem isn't serverless, rather Cloudflare Workers and WebAssembly. All major cloud vendors have serveless solutions based on containers, with longer managed lifetimes between requests, and naturally the ability to use properly AOT compiled languages on the containers.
At that point, why should I use serverless at all? If I have to think about the lifetime of the servers running my serverless functions?
It can make sense if you have very differing load, with few notable spikes or on an all in on managed services, where serverless things are event collectors from other services ("new file in object store" - trigger function to update some index)