I was picturing something more low level and less opinionated, though I can only guess how such a thing would perform in practice.
Not even necessarily a specific product, just the adoption of workflows that use already existing tools (e.g. the various API client libraries - for AWS, Kubernetes, git, docker registry, etc.) to achieve this. I realize that that could lead to reinventing the wheel, and eventually an in-house framework anyway, but it feels a lot more comfortable to start there, as you can design things closer to your exact needs.
Pulumi definitely looks interesting though.
I find using AWS without Terraform to be nearly impossible.
Cloudformation as a JSON/YAML vanilla config is just awful, and really exposes the inconsistancies between the different services.
I see very little practical value in a DSL like this. Using an existing language with an extensive ecosystem and great tooling was half the point of wanting TypeScript in the first place. Most of the "risks" can be handled with just a few eslint rules, tests (e.g. all outputs must satisfy a set of constraints), and code review.
Especially when the moment you need to do more than just generate config files (e.g. fetch some information from an external service, or even write an imperative script for the occasional task), you'd have to switch to a different langauge and all its tooling - where you can't just import the exact same type definitions, etc.
The domain is not simple enough for that, so you end up with all kinds of weird scripts around it all, or other templating/codegen solutions, plus all kinds of ad-hoc conventions that are extremely easy to break and very annoying to navigate.
Having a full blown statically typed language like TypeScript - where things can reference each other strongly (not just by names and other strings), naming conventions can be encoded in functions (or even enforced by types), and structures on every level (even your project-specific ones) have a well-defined and checked schema - would help a lot in my opinion.
Maybe deno could find a use in this niche.