But then you run into all of the problems you've outlined, plus, the tooling process for CI/CD to serverless isn't so great (even with frameworks like Serverless Stack).
That being said, I'm personally excited about the managed Kubernetes offering AWS recently announced. The idea of being able to build my own containers and then just have AWS manage them based on pre-defined configuration I've given them is a lot better than the smoke-and-mirrors Lambda gives you today. For example, how can I tell how many Lambdas of mine are running concurrently? How many are warm or cold? There's lots of visibility lost in Lambda as it is today (not to say they aren't working on improving it).