Most decent bare metal setups abstracts away the same class of "your hardware died" problems. E.g. my first rule on this is everything runs in containers whether I run in a cloud environment or on bare metal. The OS image is identical, and include tying into service discovery and a suitable orchestration mechanism (which can range from something trivially simple to, say, Kubernetes). Any modern server hardware has IPMI or something equivalent, which means you plug it in, configure the IPMI, configure network boot from a tftp/bootp or similar server holding your installation image, and from there on out you're deploying containers the same way as you would in a cloud environment, and back them up and arrange for failover the same way as in a cloud environment.

I've set up more than one hybrid setup where you didn't need to know if your workload was running in AWS or Hetzner or somewhere else, so we could use AWS for elasticity and Hetzner to keep cost down.

This is not a hard problem. And if people don't have the right skills in house, it's easy to outsource this (I for one used to make my living of automating setups like this and operating them on a retainer basis).