Often you don’t need that much hardware.
If I am reading the post correctly, those are actuals, not estimates.
It isn't clear from this particular post, but considering Patrick refers to "overprovisioning" and having a "hot spare" I get the impression that they have designed their DC setup to minimize unexpected downtime. Sure, it can still happen, but with proper up-front planning what you call "perfect world" can become typical.
> or any ancillary costs outside of racking
As I see it from Patrick's post and my own colo experience, there are three groups of costs for colo that are baked in to the cost of AWS compute and storage: capital cost of hardware (Patrick has a specific line item for this); facility cost; and labor for maintaining the hardware (which is the cost under discussion. What do you think is significant, missing, and unique to colo?
There is no way in the world that the only effort taken related to infrastructure is entirely encapsulated in ~ $200 per year.