I've worked almost entirely for companies that run services in various cloud infrastructures - Azure/Heroku/Aws/GCP/Other.
I recently started a tiny 1 man dev shop in my spare time. Given my experience with cloud services it seemed like a no brainer to throw something up in the cloud and run with it.
Except after a few months I realized I'm in an industry that's not going to see drastic and unplanned demand (I'm not selling ads, and I don't need to drive eyeballs to my site to generate revenue).
So while in theory the scaling aspect of the cloud sounds nice, the reality was simple - I was overpaying for EVERYTHING.
I reduced costs by nearly 90% by throwing several of my old personal machines at the problem and hosting things myself.
So long story short - Cost. I'm happy to exchange some scaling and some uptime in favor of cutting costs. Backups are still offsite, so if my place burns I'm just out on uptime. The product supports offline, so while no one is thrilled if I lose power, my customers can still use the product.
Basically - cost, Cost, COST. I have sunk costs in old hardware, it's dumb to rent an asset I already own.
There might well be a point when I scale into a point where the cloud makes sense. That day is not today.