They've not seen servers with IPMI tied into PXE boot and a TFTP setup. They don't realise once that server is racked up, we can log in to an IPMI console, power it on remotely, have it boot straight into a bootstrap script, remotely install an OS like CoreOS/Flatcar without manual intervention, have orchestration scripts install the necessary basic services on it without manual intervention, and boom, it's part of your own "private cloud" ready to deploy containers to that may well not require maintenance "below" the container layer for years.
And they don't realise you can contract someone to do this for you for low enough day rates that it'll take you a truly massive setup before you're paying the equivalent of a full time engineer.
Meanwhile we've had 20 years of media and culture telling people that those who get rich are the software guys, never the infrastructure guys, and that the easiest way to get into the industry is by learning web design.
Also, I suspect the industry is exhausting the pool of talent that learned computing on UNIX workstations at university in the 80s and early-mid 90s. The people who lived and breathed servers and UNIX are retiring out of the workforce, and not really being replaced. AWS is stepping in the fill the breach by selling sysadmins-as-a-service, basically, with a thin veneer of GUI programming slapped on top, and some proper documentation writers. Selling pickaxes and shovels to the gold miners - classic.
Finally, I think a lot of firms have developed a "no contractors" policy. I've never worked at a company that allowed contractors and I'm about mid-way through my own career, a bit less. At some point it has become received CEO wisdom that they're building a committed team of true believers, so "mercenaries" aren't welcome. It leads to the kind of thinking you see in this thread where "I don't have the skills, therefore I must hire someone full time, and they must earn as much as me, therefore it's too expensive" ends up leading to "and therefore I must outsource to a firm that 'contracts' for an hourly rate billed via credit card".
However for the many, many people who do already have those skills, and for the many pieces of software that are basically web servers + databases, the overhead of bare metal vs cloud VMs or services is basically a bit of Linux sysadmin work. People are acting like you have to hire a full time wizard to even consider using anything other than high cost AWS services but that is wrong: AWS requires learning too, people who understand UNIX are plentiful even if apparently not as plentiful as they once were, and a well run setup will not require constant sysadmin work. A well rounded developer will often be able to do the ops work as well.
Also "bare metal" doesn't mean running your own datacenter. You can buy hardware, send it to a colo and they'll rack it and run the network for you. That's why I say it's mostly a matter of understanding RAID: when the hardware fails (almost always disk or less commonly, RAM units), you file a ticket, blink the HDD LED and some remote hands go and swap out the part for you. Those "hands as a service" come cheap compared to AWS.