I totally agree. So much complexity for generally no good reason [0]. I saw so much of this that I ended up starting a company doing the exact opposite. I figured I could do it better and cheaper, so that that's now what we do!
If anyone wants to bail out of AWS et al and onto a few beefy servers, save some money, and gain a DevOps team in the process, then drop us an email (adam at domain in bio).
[0] My pet theory about the real reason: the hyper-scalers hire all the engineers who have the skills to deploy-to-a-few-beefy-servers, and then charge a 10x multiplier for compute. Companies can then choose between impossible hiring, or paying more. Paying more is easier to stomach, and plenty of rationalisations are available.