I still have Hetzner for a dedicated server in Europe, and it's fine. I've had it for several years now with no issues.
Before getting this job, I noticed that most dedicated servers in America are from smaller companies that re-sell their dedicated servers or colocated servers from companies like my work's or other data centers (who mainly specialize in colocation services instead of selling their own hardware.
I suppose in America, the main people companies target are for simple cheap VPS servers or "cloud scaling" services. You can also make a lot more imo by stuffing as many customers onto 1 server instead of dedicated hardware for each customer. Also a lot less management and support needed. At work 99% of our maintenance and support is for individual dedicated servers. The VPS side of the company requires very little intervention on our end.
Dedicated is starting to make more sense as cloud prices are kinda nuts + tooling is better now, so ‘roll your own cloud’ is becoming more feasible.
It just doesn’t get as much press as the big cloud offerings, and most of them are relatively local players specializing in their region (and associated network/property). OVH has several large DCs selling dedicated hardware for rent here in the US.
The first one I clicked on has options around $50 too: https://www.namecheap.com/hosting/dedicated-servers/our-pric...
https://opennebula.io is worth looking at for that sort of thing (not that it's new). You don't have to do it that way, but its "edge" support for simple provisioning on bare metal providers doesn't include Hetzner; I think it assumes you can get instances on demand. That sort of solution isn't complex or expensive enough for my site, and doubtless others, though. Especially when you just want compute, I can't see the point in the pain (which surprised us) and expense of AWS et al.
I think Hetzner's dedicated servers product started from the consumer demand for Counter-Strike servers, maybe it's because Counter-Strike wasn't as popular in the US? Not 100% that's why Hetzner has been succesful with dedicated servers but I don't have another explanation.