The value proposition of Hyper is that the overhead of guest kernel is greatly reduced to the point of being insignificant if you run any significant apps inside HyperContainers, meanwhile you gain the benefit of kernel isolation and ditching VM cluster management altogether.
They dont boot a "complete OS", they boot the kernel and a process - that is it, not your systemd which brings in Firefox kind of "complete OS".
But you don't own the server, thus you don't pay for the overhead (if any).
I'm sorry, but you don't know what you are talking about. You pay for what you use. I don't own Amazon's servers either, but I pay for every bit of memory and CPU time that my EC2 instances use, and that includes the memory and CPU time consumed by my instance's kernel.
Based upon responses from Hyper, they appear to address these concerns in a manner I have never heard before. I will certainly be looking into their core technology.