There is so much hidden cost in maintaining your own bare metal infrastructure. I am always astounded by how people overlook the massive opportunity cost involved in not only setting up, securing, and maintaining your bare metal infrastructure, but also make it state of the art, including best practices, making sure you have required uptime, monitoring and intervening if necessary. - I work in a highly regulated market with 700 coworkers, our IT maintains an endless amount of VMs. And you cannot imagine how much more work they have to do compared to a setup where you spin up services in AWS or Azure. And destroy it when you don’t need it. No updates, no patches. No misconfiguration. Not every company uses automation either (chef, ansible and whatnot)
I agree, I have a restaurant POS system and I think self-hosting would easily kill the product velocity, and if we screw up bad, even the company.
However, I do get the point about cost-premium and more importantly vendor-risk that's paid when using managed services.
We are hosted on cloudflare workers which is very cheap, but to mitigate the vendor risk we have also setup up replicas of our api servers on bunny.net and render.com.