> IO remains flat for the past decade
Although I agree that storage density growth for HDDs has greatly outstripped any I/O growth, I don't agree that the latter has been flat (i.e. no growth).
Are you sure you're not doing something like comparing 7200rpm drives from 10 years ago to 5900rpm (or slower) or variable-speed "green" or even SMR drives from today?
That said, I think what many people forget is that for "cloud" storage, the I/O bottleneck is almost certainly going to be the network and not the backend storage, especially for mainly sequential access.
If each of their "pods" holds 60 drives and each "vault" holds 20 pods (17 of which are non-parity data), that's over a thousand drives per vault. If each drive is 7200rpm non-SMR, it can saturate a 1Gb ethernet with sequential I/O, and random I/O would divide that by 10 or so. That's the equivalent of 100Gb/s, per vault.
That kind of bandwidth is possible and even affordable to provision inside the datacenter without metering and charging for it and is likely to dwarf the size of the connection to the Internet.