The big players know that what separates the majors from the minors is trust. If you buy from AWS, you know what you get works, and you will pay a premium for that assurance. And also it is really fricking expensive to be AWS.
That said, there is a lot of AWS that I probably wouldn't know existed - I know in my day job I make big use of maybe five services, plus maybe another 10 glue services between them (CloudWatch, IAM, VPC etc).
Disk is cheap. Real cheap.
Perhaps irrational but can't argue with the peace of mind that expensive clouds offer. Although we've seen misconfigured S3 buckets leaking data so.
The big players leverage their understanding of science and well paid lawyers to play a cognitive game where investment in storage is set aside, as storage is “a solved problem”, they collude to focus government spend on new things they can charge consumers for after charging us via taxes and agency, to build it.
Good luck finding a VC willing to compete against Bezos. They’re not going to target the guy managing the infra risk, providing a cheap platform key to their cheap startup gambling. They’re going to target naive college kids to try and build a rocket for them. Because VCs are smarter than Bezos; do none of the work, own the reward.