The thing is that most baremetal hosts are exactly as the parent described - annoyingly slow, manual, etc.
Hetzner is a little gem here, where they have a large selection of pre-specced machines that are ready for automated deployment, and they also show you a pool of cheaper machines that were returned by other customers/terminated/cancelled and automatically wiped with varying specs that you can also automatically pick out via API (this includes random upgrades that the ex-customers added).
If you manage to fit in the square hole that their automation occupies, it's a great fit.
EDIT: oh and also server buying/renting/installing is probably the smallest problem when running your own metal/colo or renting servers. a big use case for clouds is, data sharing between hosts via object storage/moveable disks, etc. which is non trivial on "bare metal/colo/renting" and that is just one use case.
But sometimes, you just need a ton of bandwidth, compute, RAM, etc. and don't care about managed services.. I don't think there's a single major cloud provider that will give me a 2TB Intel DC SSD to use 100% of r/w for $20/m. And not being billed per-GB bandwidth is a massive relief for certain use cases.
What makes you think it’s a “baremetal physical machine”? This description sounds very cloud-y to me.
I would be incredibly impressed if it was not baremetal.
I do have one dislike, which is how harshly they enforce mac addresses (so spinning up new VMs and bridging them into the network gets that mac blocked until you register it in the API or panel). And I guess the other dislike is that they're only in Europe, which is 200ms from me.
They don't really do custom specs, iirc part of the low pricing is because of how much useful automation they have. Sure, it's not cloud cloud, but if I have a personal side project that I need a few terabytes of ram for, there is no way I can afford AWS/GCP/etc.