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Does anyone know why lambda is taking off, compared to heroku style PaaS?

Heroku style still removes the burden of managing servers ("serverless"), but doesn't lock you in as much. You could easily move your own server process to a different provider.

Is it just because Amazon doesn't offer anything similar to heroku?

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A number of reasons. For one, you pay per execution with Lambda (and other similar services like Azure Functions and Cloudflare Workers)...and the costs can be dramatically lower. Here's a great article by haveibeenpwned author explaining how they support 141 million requests a month at 2.6 cents per day: https://www.troyhunt.com/serverless-to-the-max-doing-big-thi...

Besides cost, automatic scaling is something traditional PaaS does not offer.

Amazon is the new IBM - nobody gets fired for using it. I have personally moved services which were cheaper and more performant with other 3rd party providers to Amazon just becausr higher-ups wanted us to keep as much stuff with them as possible, for obscure reasons like "we already have a relationship with Amazon" i.e. their sales rep keeps sending me free stuff and sending me on BS "training courses" with free lunch.

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