I have my own anecdote: I have serveral home servers running CentOS 7 (set up nearly 6 years ago). I update all the time and I've had zero issues. Literally nothing has ever broken. My previous servers ran CentOS 6, and were equally reliable.
My desktop runs Arch Linux, and gets ever kernel dot release. I've had an unbootable system at least 5 times over the last 5 years, requiring me to boot from a flash drive to downgrade a package, or edit a grub config. As you can imagine, it's bitten me at the worst possible time (when I really don't have time to troubleshoot).
I know some people advocate for Arch on the server, but to me that seems crazy. Nothing against Arch. It's great for a desktop, and I knowingly trade off some reliability/stability for the latest stuff. I wouldn't make that trade on a server that hosted important stuff.
It would be way cheaper and easier for us to ship a newer kernel, we do it because it allows RHEL to have significantly less regressions than upstream kernels (and I'm talking about what the kernel engineers say, not some marketing bullshit).
I would guess that most of RHEL 7 is on par with 4.14 or 4.19 (which is newer than the RHEL 8 kernel!) and RHEL8.3 will have subsystems updated up to 5.7-5.8.
Of course it's not much fun backporting 50 patches for Intel vulnerability mitigations to RHEL7.2 that some mission critical apps still use. But I guess it pays my bills so who am I to complain, I love everything else about my job. ;)
Unfortunately the kernel has significant and widespread implications on the system, so it's very hard to figure out how to support a system that is running a kernel version you haven't validated. As a RH customer, the way I handle this kind of thing is usually by replicating the problem on a "stock" system and working with RH support on fixing it on that system --- this is often an important step anyway since, for my own purposes, I need to figure out whether or not I introduced the problem by something I did.
(disclaimer: I work for the Compute team in Oracle Cloud Infrastructure, and work with the OL team regularly on a number of things. It has been one of the more interesting aspects of the job)