Is that a real problem with a reputable bare-metal hosting provider? I agree that a fly-by-night VPS provider would be a major risk, but OVH for example is a major host in Europe (that successfully hosted websites long before the "cloud" was a thing). They have all the major certifications and have been in the business for two decades now and their uptime is solid.

The only risk I can see is the lack of managed services, but Postgres isn't that hard to manage yourself, and other value-add AWS services can still be used (the cost savings of your baseline load being on bare-metal would most likely still offset the bandwidth costs of moving data between AWS managed services and your bare-metal host).