It misses the coolness factor. And the engineers need to put cloud on CV.

I love Hetzner and keep a couple of machines running for prototypes and running scripts. But I can't use it for production or as my primary remote development environment because for someone in India the latency is way too high. I really wish they had Indian datacenter or any similar alternative. The ones in the country are at least 4x priced with still worse specs and much worse reliability and service. If anyone knows any good option in India, I would start using them for me and clients in a heartbeat. Until then, I am stuck with AWS.

Plenty of companies to that, have rented bare metal, have owned bare metal, etc. It's just not a very visible practice and not backed by armies of marketers.

Many enterprises use cloud because the cloud offers a very high level of compliance. https://aws.amazon.com/compliance/

The hosting providers which provide similar level of compliance are not cheap either.