> Being able to start small from a $1/mth bill without any fixed cost overheads is incredibly powerful for small startups.

Yes, no doubt about it. Initially AWS was mostly sold as "You never know when you might want to scale fast, imagine being featured in a newspaper and your servers can't handle the load, you need cloud for that!" to growing startups, and in that context it kind of makes sense, pay extra but at least be online.

But initially when you're small, or later when you're big and establish, other things make more sense. But yes, I agree that if you need to aggressively be able to scale up or down, cloud resources make sense to use for that, in addition to your base infrastructure.