They aren’t competing in the same space
Easiest way to compare is bandwidth costs: AWS/Azure/Google Cloud charge around $0.05/GB at their cheapest prices. DigitalOcean/Linode/Vultr charge around $0.005/GB (and it comes with a VPS bundled).
If you’re doing anything bandwidth intensive (several PB a month), one is viable, the other is not
Having used both daily for years now I can certainly see why DO will have an appeal to some over something as large as AWS.
It is way less confusing and their docs are much easier to get through. I always recommend people starting out with cloud VMs to go DO instead of AWS
Obviously DO has a lot less features than AWS or Azure, but they do add features every couple of years, and their interface is so much simpler to navigate.
I feel DO/Linode/etc are more closely related to a hosted vSphere + f5, than a "cloud provider" in the same vein as AWS/Azure.
I mean, it's all sheer speculation, but I think it is equally likely that Digital Ocean is having a hard time vs. just restructuring to do some housekeeping... I don't know how any 600 person cloud company survives in the same world as AWS these days.