This is hardly the first instance of these large cloud providers screwing over their customers in terrible ways. The number of these stories on HN alone over the year must number in the 100's if not more. The 'other side' has had a decade or more to get their house in order and has not managed to do so. Support typically is so abysmal that if you need it at all you are screwed. Forking over 1000's of $ / month does not seem to make much difference.

The safe default seems to me to believe these stories at face value unless evidence to the contrary has been provided.

These companies have millions of customers. Nothing is perfect and scale will always bring problems, both in quantity and depth. The massive success and reliability of cloud services doesn't point to a major risk for most.

Regardless I don't see what the issue is in waiting for the full story.

That you'll be waiting forever?

I believe by waiting they mean ignoring the possible issue until the situation changes. So yeah, you can wait forever. It's free.

Your interpretation is faulty.